Accounting Chapter 6

Front

Only accounts with a balance are listed in the Trial Balance columns of a work sheet.

Back

False

Front

Adjusting entries must be posted to the general ledger accounts.

Back

True

Front

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

Back

False

Front

Two financial statements are prepared from the information on the work sheet.

Back

True

Front

If the Trial Balance columns are not equal and the difference can be evenly divided by 9, then the error most likely is a transposed number.

Back

True

Front

When the Income Statement Debit column total is greater than the Income Statement Credit column total on a work sheet, does the business have a net income?

Back

False

Front

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

Back

True

Front

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

Back

True

Front

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

Back

False

Front

The amount of the supplies used during a fiscal period is an expense.

Back

True