Accounting Chapter 7 Review

Front

A balance sheet has three sections: heading, assets, and liabilities.

Back

False

Front

An amount written in parentheses on a financial statement indicates an estimate.

Back

False

Front

The date on a monthly income statement prepared on July 31 is written as

Back

For Month ended July 31, 20xx

Front

Information needed to prepare an income statement's revenue section is obtained from a work sheet's Account title column and

Back

Income statement credit column

Front

The amount of net income calculated on an income statement is correct if it is the same as net income shown on the work sheet, debits equal credits, it is the same as the balance sheet, none of these.

Back

it is the same as net income shown on the work sheet

Front

The formula for calculating the net income component percentage is

Back

net income/total sales

Front

A balance sheet reports financial information over a specific period of time.

Back

False

Front

Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account title column and __________.

Back

balance sheet credit column

Front

When preparing a balance sheet, the amount of owner's capital is obtained from: the general ledger, the income statement, The work sheet's balance sheet credit column, none of these

Back

none of these

Front

The financial condition of a business refers to its financial strength.

Back

True