XYZ Company failed to record the purchase of inventory on account at the end of 2008. In which of the following ways is the Balance Sheet misstated?

Temporary revenue and expense accounts may be closed _________________.

Payments made in advance for goods or services a firm will receive at a later date are called ______________.

Deduction or valuation accounts that accumulate amounts subtracted from other accounts are called _____________________.

XYZ Company purchased a 1-year insurance policy for $3,000 on April 1 of Year 1. The amount of prepaid insurance reported on the Balance Sheet and the amount of insurance expense reported on the Income Statement on December 31 of Year 1 are, respectively:

The amount of proceeds from the sales of Preferred Stock in excess of par value is called _______________.

Goods on hand that have been purchased for resale are called ______________.

Which of the following accounts is NOT a temporary account that should be closed during the closing process?

In preparing its year-end adjusting entries, XYZ Company neglected to adjust prepaid insurance for the amount of insurance expired during Year 1. Which of the following reflects the result of this error?

Which of the following is NOT an example of a period expense?