Accounting: Chapter 7 Review (#2)

The date on a monthly balance sheet prepared on July 31 is written as

• For Month Ended July 31, 20--

• July 31, 20--

• For Year Ended July 31, 20--

• None of these

Information needed to prepare a balance sheet's Assets section is obtained from a worksheet's Account Title column and

• Income Statement Debit column

• Income Statement Credit column

• Balance Sheet Debit column

• Balance Sheet Credit column

Information needed to prepare a balance sheet's Liabilities section is obtained from a worksheet's Account Title column and

• Income Statement Debit column

• Income Statement Credit column

• Balance Sheet Debit column

• Balance Sheet Credit column

The amount of capital reported on a balance sheet is calculated as

• Capital Account Balance + Net Income - Drawing Account Balance

• Capital Account Balance - Net Income - Drawing Account Balance

• Capital Account Balance + Net Income - Drawing Account Balance

• Capital Account Balance - Net Income + Drawing Account Balance

If a business wanted to show how the current capital balance was calculated, it would

• only list net income on the balance sheet

• only list net income and withdrawals on the balance sheet

• list only the beginning capital balance on the balance sheet

• list the beginning capital balance, the net income, the withdrawals, and the ending capital balance on the balance sheet

Which is not an external user of a business's financial information?

• Bankers

• Creditors

• Managers

• Customers

Which accounting concept is applied when financial statements contain all information necessary to understand a business's financial condition?

When Healthy Human prepares financial statements at the end of each monthly fiscal period when accounting concept is being applied?

Ella Fant assumes that she will own and operate Ella's Eatery until she retires and sells the business to someone else, who will continue its operation. Which accounting concept is applied when financial statements are prepared with the expectation that a business will remain in operation indefinitely?

Classify the account Sales