Fill in the Blanks

1. The formal income statements uses Opening and Closing figures for inventory
2. The Gross Profit figure is not found on worksheet.
3. Selling expense are related to the selling activity.
4. Administrative Expense are related to Administrative function.
5. Operating Expense could be broken down into selling and administrative expense
6. The Ending figure for capital is not found on the worksheet
7. Current Asset are cash or other assets that will be converted into cash during the normal
operating cycle of the company or one year, whichever is longer.
8. Tangible Assets and Intangible Assets are long-lived assets used for the production or sale of
other assets or services.
9. Debts or obligations that are to be paid with current assets within one year or one operating
cycle is called Current Liability
10. Mortgage Payable is an example of Non-current Liability
11. Ending Merchandise Inventory is a Current Asset
12. By the adjusting process, the beginning inventory of the period is transferred to Income
Summary.
13. The post-closing trial balance contains no temporary accounts.
14. A reversing entry involves certain adjusting entries.