Accounting Chp 6

Front

Many businesses choose a one-year fiscal period that ends during a period of high business activity.

Back

False

Front

Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.

Back

True

Front

The balance of the supplies account plus the value of the supplies on hand equals the up-to-date balance of the supplies account.

Back

False

Front

The value of the prepaid insurance coverage used during a fiscal period is an expense.

Back

True

Front

When the Income Statement Credit column total is greater than the Income Statement Debit column total on a work sheet, the business has a net income.

Back

True

Front

If an amount is written in an incorrect column on a work sheet, the error should be erased and the amount should be written in the correct column.

Back

True

Front

If the Trial Balance columns are not equal and the difference is $50.00, the error most likely is a $25.00 amount written in the wrong column.

Back

True

Front

The accounting concept Consistent Reporting is being applied when a word processing service business reports revenue per page one year and revenue per hour the next year.

Back

False

Front

Two financial statements are prepared from the information on the work sheet. True or False?

Back

True

Front

Net income on a work sheet is calculated by subtracting the Income Statement Credit column total from the Income Statement Debit column total.

Back

True