ACCT 211 CONNECT HOMEWORK CHAPTER 6
EXERCISES – LIBERTY UNIVERSITY || 2025/2026
VERIFIED SOLUTIONS WITH CORRECT
ANSWERS || 100% GUARANTEED A+
Long-term investments.
Noncurrent (long-term) liabilities.
Current assets.
Plant assets.
Select the statements below that describe the purpose of a post-closing trial balance. (Check
all that apply.)
*One purpose is to verify that total debits equal total credit for permanent accounts.
*One purpose is to verify that all temporary accounts have zero balances.
Which of the following statements correctly define(s) a profit margin? (Check all that
apply.)
*Profit margin is also called return on sales.
*Profit margin is the ratio of a business's net income to its net sales.
,Income Statement
Reports a business's revenues and expenses for a period of time.
Balance sheet
Reports a business's assets, liabilities and equity on a specific date.
Work sheet
An internal accounting aid which helps in preparing financial statements.
Trial balance
A list of accounts and their balances at a point in time.
Statement of cash flows
Reports the inflows and outflows of cash during a period of time.
Recall the column headings of a work sheet used to prepare financial statements. Which of
the following items are on a worksheet. (Check all that apply.)
*Unadjusted Trial Balance columns
*Balance Sheet columns
*Adjusted Trial Balance columns
*Income Statement columns
*Adjustment columns
Rather than debiting an asset account, which of the following statements explains an
alternate recording procedure to journalize prepaid expenses, such as prepaid rent or
supplies. (Check all that apply.)
,A reversing entry can be described as a(n): (Check all that apply.)
*entry that is the exact opposite of an accrual adjusting entry.
*entry that is used for adjusting entries involving accrued revenues and accrued expenses.
*entry whose purpose is to simplify a company's record keeping.
*optional entry.
Which of the following statements describes why accrual accounting better reflects a
business's performance? (Check all that apply.)
*Revenues are always recorded in the period in which they are earned.
*Comparability of financial statements is improved.
*Expenses are always recognized in the period in which they are incurred.
The expense recognition matching principle aims to record ___ in the same accounting
period as the ___ that are earned as a result of those costs. This principle is a major part of
the ___ process.
*expenses
*revenues
*adjusting
Place the steps in the adjusting process in the correct order in which they would be
performed.
, *determine what the current balance is
*determine what the balance should be
*make the adjusting entries
A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance
account was initially increased for the payment. The required adjusting journal entry on
December 31 includes a: (Check all that apply.)
*debit to Insurance expense for $400.
*credit to Prepaid insurance for $400.
A calendar year-end reporting period is defined as a ( / 12) -month period which ends
on___
12
December
On December 1, a company pays $3,600 for a 36-month insurance policy. After one month,
accrual accounting requires $ (100/3,600) of insurance expense be reported on the income
statement ending December 31. However, if cash basis accounting is used, $ (100/3,600) of
insurance expense would be reported at the time of purchase.
Blank 1: 100
Blank 2: 3,600
Which of the following statements describes the expense recognition (matching) principle?
(Check all that apply.)
EXERCISES – LIBERTY UNIVERSITY || 2025/2026
VERIFIED SOLUTIONS WITH CORRECT
ANSWERS || 100% GUARANTEED A+
Long-term investments.
Noncurrent (long-term) liabilities.
Current assets.
Plant assets.
Select the statements below that describe the purpose of a post-closing trial balance. (Check
all that apply.)
*One purpose is to verify that total debits equal total credit for permanent accounts.
*One purpose is to verify that all temporary accounts have zero balances.
Which of the following statements correctly define(s) a profit margin? (Check all that
apply.)
*Profit margin is also called return on sales.
*Profit margin is the ratio of a business's net income to its net sales.
,Income Statement
Reports a business's revenues and expenses for a period of time.
Balance sheet
Reports a business's assets, liabilities and equity on a specific date.
Work sheet
An internal accounting aid which helps in preparing financial statements.
Trial balance
A list of accounts and their balances at a point in time.
Statement of cash flows
Reports the inflows and outflows of cash during a period of time.
Recall the column headings of a work sheet used to prepare financial statements. Which of
the following items are on a worksheet. (Check all that apply.)
*Unadjusted Trial Balance columns
*Balance Sheet columns
*Adjusted Trial Balance columns
*Income Statement columns
*Adjustment columns
Rather than debiting an asset account, which of the following statements explains an
alternate recording procedure to journalize prepaid expenses, such as prepaid rent or
supplies. (Check all that apply.)
,A reversing entry can be described as a(n): (Check all that apply.)
*entry that is the exact opposite of an accrual adjusting entry.
*entry that is used for adjusting entries involving accrued revenues and accrued expenses.
*entry whose purpose is to simplify a company's record keeping.
*optional entry.
Which of the following statements describes why accrual accounting better reflects a
business's performance? (Check all that apply.)
*Revenues are always recorded in the period in which they are earned.
*Comparability of financial statements is improved.
*Expenses are always recognized in the period in which they are incurred.
The expense recognition matching principle aims to record ___ in the same accounting
period as the ___ that are earned as a result of those costs. This principle is a major part of
the ___ process.
*expenses
*revenues
*adjusting
Place the steps in the adjusting process in the correct order in which they would be
performed.
, *determine what the current balance is
*determine what the balance should be
*make the adjusting entries
A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance
account was initially increased for the payment. The required adjusting journal entry on
December 31 includes a: (Check all that apply.)
*debit to Insurance expense for $400.
*credit to Prepaid insurance for $400.
A calendar year-end reporting period is defined as a ( / 12) -month period which ends
on___
12
December
On December 1, a company pays $3,600 for a 36-month insurance policy. After one month,
accrual accounting requires $ (100/3,600) of insurance expense be reported on the income
statement ending December 31. However, if cash basis accounting is used, $ (100/3,600) of
insurance expense would be reported at the time of purchase.
Blank 1: 100
Blank 2: 3,600
Which of the following statements describes the expense recognition (matching) principle?
(Check all that apply.)
