INTACC Prelim Exam | 100% Correct Answers | Verified | Latest 2024 Version

The purpose of preparing a trial balance is a. To ensure that there were no errors committed b. To prove that all journal entries were posted correctly c. To prove the equality of the monetary totals of debits and credits d. All of these - c. To prove the equality of the monetary totals of debits and credits If an entity uses the income method of initial recording of income, the year end adjusting entry involves a. Crediting an income account for the earned portion of the advance payment received b. Debiting a liability account for the earned portion of the advance payment received c. Debiting an income account for the earned portion of the advance payment received d. Crediting a liability account for the unearned portion of the advance payment received - d. Crediting a liability account for the unearned portion of the advance payment received Reversing entries may not be made on adjusting entries for a. The accrual of income or expense b. The unexpired portion of prepayments c. The unearned portion of the advances received d. The expired portion of prepayments - d. The expired portion of prepayments