Accounting I Chapter 8

What section of the worksheet would you copy the Trial Balance section amounts for asset, liability, and owner's equity accounts to?

• Income Statement

• Balance Sheet

• Net Income

• Adjustments

What is the effect of net loss on the financial statements?

• Net loss has no effect on capital

• Net loss increases revenue

• Net loss decreases capital

• Net loss increases capital

What do you have if expenses are higher than revenue?

What elements are listed on a Worksheet Heading?

• Business Name

• Time Period Covered

• Form Type

• All of the Above

Expenses and revenue must be earned within the same accounting principle.

• Accounting Cycle

• Matching Principle

• GAAP

• CPA

Your business has $25,000 in revenue and $23,795 in expenses for this quarter. What is the result on your income statement?

• Net Profit of $1,255

• Net Loss of $1,255

• Net Profit of 1,205

• Net Loss of $1,205

The sixth step in the accounting cycles is the _______________.

When posting a journal entry, you should always post the credit first.

• True

• False

The ____________ is the record of original entry.

The heading in the worksheet answers which question(s)?

• Who

• What

• When

• All of the Above