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Chapter 6 and 7 ?'s
| Question | Answer |
|---|---|
| Adjustments | changes recorded on a work sheet to update general ledger information needed to prepare financial statements |
| Balance Sheet | a financial statement that reports assets, liabilities, and owner's equity on a specific date |
| Fiscal Period | A proof of equality of debits and credits in a general ledger |
| Income Statement | A financial statement showing the revenue and expenses for a fiscal period |
| Net Income | tje dofferemce betweem total revenue and total expenses when total revenue is greater |
| Net Loss | The difference between total revenue and total expenses when total expenses are greater |
| Trial Balance | A proof of equality of debits and credits in a general ledger |
| Work Sheet | A columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
| The accounting concept Consistent Reporting is being applied when a delivery business reports revenue for the number of deliveries made one year and the amount of revenue recieved for the deliveries made the next year | False |
| An accounting period is also known as a fiscal period | True |
| Journals, ledgers, and work sheets are considered permanent records | False |
| all general ledger account titles are listed on a trial balance in the same order as listed on the chart of accounts | True |
| The four questions asked when analyzing an adjustment 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 adjusment for insurance are Prepaid Insurance Expense and Insurance | False |
| Totaling and ruling the Adjustments columns of a worksheet 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 Credti column total from the Income Statement Debit column total | False |
| If errors are found on a work sheet the must be erased and corrected before any further work is completed | True |
| When two column totals are not in balance on the work sheet, the difference between the totals is calcuated 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 | False |
| If tehre are errors in the work sheet's Trial Balance Columns, it might be because not all general ledger account balances were copied in the Trial Balance column correctly | True |
| Errors 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 calculator | False |
Created by:
Rachy Boo Sunshine
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