Southern New Hampshire University - ACCOUNTING 100

Unit 2: Challenge 1: End of the Accounting Period

Conceptual Framework and Principles

1)In order to present an accurate picture of the financial health of his company, Bob reported all of the expenses that had been incurred, even if they had not been paid yet. Bob is practicing the                         principle.

2. Travis reported the financial health of his landscaping company to the board of directors. The financial statements had not yet been issued for the end of the quarter, but Travis included all accounting events that had occurred after the close of the quarter. Travis is practicing the  principle.

3. Amy, who has been an accountant for 12 years, worked for Arnold and Post, a mid-size law firm in Huntsville. At the end of each fiscal year, Amy prepares an annual report for the firm's board of directors. The report includes all of the details found in the firm's financial statements. Amy makes sure that the dates on the financial statements are consistent and consecutive from one year to the next. Amy is practicing the                                                                                       principle.

4. End of Period Activities

1. 1. Paula is putting together a balance worksheet and just finished computing the adjusted trial balance section of the worksheet and checked to make sure everything is in balance. Just prior to completing the adjusted trial balance, Paula prepared the section. After she finishes the adjusted trial balance, she will complete the

                   section of the worksheet.

1. 2. Brian is putting together a balance worksheet and just finished entering the balances of the general ledger accounts into the trial balance section of the worksheet. After making sure that the trial balance is accurate, Brian will prepare the                                  section, followed by the section of the worksheet.

5. Trial Balance
   1. A trial balance is prepared in the order of:

1. 2. Select the option that shows the accounts listed in the correct order on a trial balance worksheet.

1. 3. Select the option that shows the accounts listed in the correct order on a trial balance worksheet.

6. Case Study: Trial Balance Worksheet
   1. Which of the following statements is NOT a characteristic of a trial balance?

1. 2. What is the purpose of a trial balance worksheet?

1. 3. Which of the following statements most accurately describes the trial balance worksheet above?

7. Adjusting Entries
   1. 
      Which scenario below correctly describes an unearned revenue adjustment entry?

1. 2. As Bob and Robert reviewed the balance sheet accounts for their car wash business, Robert reminded Bob of the money that had not yet been paid to their mechanic. The mechanic fixed a coin-collecting machine, but Robert did not pay him because he had run out of checks. Based on this information, Bob made an adjustment to the trial balance worksheet. He recorded the money that Robert would pay the mechanic next week.

The type of adjustment Bob recorded is called                 .

1. 3. Which scenario below correctly describes a supply adjustment entry?

8. Creating Adjusting Entries