1) Which of the following account for the difference between the adjusted trial
ID: 2601765 • Letter: 1
Question
1) Which of the following account for the difference between the
adjusted trial balance and the post closing trial balance?
Choose two.
A) Permanent accounts are excluded.
B) The retained earnings account is closed out.
C) The retained earnings account is properly updated.
D) Temporary accounts are excluded.
2) Put the headings in the order in which they are normally
found in a worksheet.
A) Trial balance
B) Adjustments
C) Income statement
D) Statement of retained earnings
E) Adjusted trial balance
F) Balance sheet
Can you explain the answers.
Explanation / Answer
Answers 1 C D In the post closing trial balance, all the values shown are those to be shown in the final balance sheet. 2 The order in which the headings appear in a worksheet is: A Trial balance B Adjustments E Adjusted trial balance C Income statement D Statement of retained earnings F Balance sheet Explanation: Adjustments to income and expenses are first made in the adjustments. The Adjusted trial balance is the result of adjustments above. The Income Statement is prepared from the Adjusted Trial Balance. Before preparing the balance sheet, a statement of retained earnings is prepared. After closing the statement of retained earnings, all the values that remain are those to be carried forward to the next period i.e. the balance sheet.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.