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Chapters 6&7!
Question | Answer |
---|---|
the length of time for which a business summarizes and reports financial info | fiscal period |
a columnar accounting forn used to summarize the general ledger info 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 that reports assets, liabilities, and oe on a specific date | balance sheet |
a finacial statement showing the revenue and expenses for a fiscal period | income statement |
the difference between total revenue and total expense when total revenue is greater | net income |
the difference between total revenue and total expense when total expenses are greater | net loss |
the date on a monthly income statement prepared on july 31 is written as... | for month ended july 31, 2011 |
information needed to prepare an income statements revenue section is obtained from a work sheets accout title column and... | income statement credit column |
info needed to prepare an income statements expense section is obtained from a work sheets account title column and... | income statement debit column |
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 |
the formal for calculating the net income component percentage is... | net income divided by total sales equals net income component percentage |
the accounting concept consistent reporting is being applied when a deliever business reports revenue for the number of delieveries made one year and the amount of revenue received for the deliveries made the next year | FALSE |
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 | FALSE |
the best way to prevent errors is to use a calculator | FALSE |
the matching expenses the revenue accounting concept is applied when the revenue earned and the expenses incurre to earn that revenue are reported in the same fiscal period | TRUE |
the net income on an income statement is verified by checking the balance sheet | FALSE |
when a business has two different sources of revenue, a separaed income statement should be prepared for each kind of revenue | FALSE |
a balance sheet reports financial info on a specific date and includes the assets, liabilities, and OE | TRUE |
the position of the total asset lines on the balance sheet is determined after the equitites section is prepared | TRUE |