The preparation of closing entries:
a. is an optional step in the accounting cycle.
b. results in zero balances in all accounts at the end of the period so that they are ready for the following period's transactions.
c. is necessary before financial statements can be prepared.
d. results in transferring the balances in all temporary accounts to Retained Earnings.
Ans: d. results in transferring the balances in all temporary accounts to Retained Earnings.
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How is reporting for other comprehensive income (OCI) different between U.S. GAAP and IFRS?
A) U.S. GAAP allow either a one-statement approach or a two-statement approach while IFRS require a two-statement approach using the direct method. B) U.S. GAAP allow either a one-statement approach or a two-statement approach while IFRS require a two-statement approach and allow more items to be classified as OCI. C) Both U.S. GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS require the direct method. D) Both U.S. GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS allow more items to be classified as OCI.
The accountant for Busch Corp was preparing a bank reconciliation as of February 28, 2016 . The following items were identified: Busch's book balance $15,000 Outstanding checks 2,500 Service charge 15 Customer's NSF check returned by the bank 100 What amount will Busch report as its adjusted cash balance at February 28, 2016?
a. $12,385 b. $12,500 c. $14,885 d. $17,385