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Chapters 6 and 7
| Question | Answer |
|---|---|
| the length of time for which a business summarizes and reports financial information | fiscal period |
| a columnar accouting form used to summarize the general ledger information needed to prepare financial statements | work sheet |
| a proof of equality of debits and credits in a general ledger | trial balance |
| changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period | adjustments |
| a financial statement the reports assets, liabilities, and owners equity on a specific date | balance sheet |
| a financial statement showng the revenue and expenses for a fiscal period | income statement |
| the difference between total revenue and the total expenses when a total revenue is greater | net income |
| the difference between total revenue and total expenses when total expenses are greater | net loss |
| an accouting period is also known as as a fiscal period | true |
| journals, ledgers, and work sheets are considered permanent records | false |
| all general ledger account titles are listed ona a trial balance in the same order as listed on the chart of accounts | true |
| the four questions asked when analyzing an ajustment are: WHy? Where? When? and How? | false |
| the two accounts affected by the adjustment for supplies are Supplies and Supplies Expense | true |
| the two accounts affected by the adjustment for insurance and Prepaid Insurance Expense and Insurance | false |
| Totaling and ruling the adjustments columns of a work sheet are necessary to prove the equality of debits and credits | true |
| two financial statements are prepared from the information on the work sheet | true |
| net income on a work sheet is calculated by subtracting the income statement credit column total from the income statement debit column total | false |
| if errors are found on a work sheet, they must be erased and corrected before any further work is completed | true |
| when two column totals are not in balacne on the work sheet, the difference between the two totals is claculated and checked | true |
| if the difference between the totals of debit and credit columns on a work sheet can be evenly divided by 9, then the error is most likely in addition | true |
| erros in general ledger accounts should never be erased | true |
| most errors occur in doing arithmetic | true |
| the best way to prevent errors is to use a calulater | false |
Created by:
zacharycarlson
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