1. Why are the debit and credit entries in the Adjustments columns of the work sheet identified with letters?
2. What is a company’s operating cycle?
3. What classes of assets and liabilities are shown on a typical classified balance sheet?
4. How is unearned revenue classified on the balance sheet?
5. What are the characteristics of plant assets?
6. How do reversing entries simplify recordkeeping?
7. If a company recorded accrued salaries expense of $500 at the end of its fiscal year, what reversing entry could be made? When would it be made?