Chapter 8 Test Review
Help!
|
|
||||
|---|---|---|---|---|---|
| Reporting in the same fiscal period the revenue earned and the expenses incurred to earn that revenue is an application of the accounting concept Matching Expenses with Revenue | True
🗑
|
||||
| The owner's capital amount reported on a balance sheet is calculated as: capital account balance plus drawing account balance less net income. | False
🗑
|
||||
| The formula for calculating net income is: total revenue minus total expenses equals net income. | True
🗑
|
||||
| The net income calculated for the income statement and the net income on the worksheet must be the same. | True
🗑
|
||||
| The Adequate Disclosure accounting concept is applied when financial statements contain all information necessary to understand a business's financial condition. | True
🗑
|
||||
| On an income statement, double lines are ruled across both amount columns to indicate that debits equal credits. | False
🗑
|
||||
| For a service business, the revenue reported on an income statement includes components for total expenses and net income. | True
🗑
|
||||
| The formula for calculating the total expenses component percentage is: the total expenses divided by total sales equals total expenses component percentage. | True
🗑
|
||||
| The financial condition of a business refers to its financial strength. | True
🗑
|
||||
| The current capital to be reported on a balance sheet is calculated as: the capital account balance plus net income equals current capital. | False
🗑
|
||||
| The owner's equity section of a balance sheet may report different kinds of details about owner's equity, depending on the need of the business. | True
🗑
|
||||
| Component percentages on an income statement are calculated by dividing sales and total expenses by net income. | False
🗑
|
||||
| A component percentage is the percentage relationship between one financial statement item and the total that includes that item. | True
🗑
|
||||
| An income statement reports information over a period of time, indicating the financial progress of a business in earning a net income or net loss. | True
🗑
|
||||
| The Matching Expenses with Revenue accounting concept is applied when the revenue earned and the expenses incurred to earn that revenue are reported in the same fiscal period. | True
🗑
|
||||
| Information needed to prepare an income statement comes from the trial balance columns and the income statement columns of a work sheet | False
🗑
|
||||
| An amount written in parentheses on a financial statement indicates an estimate. | False
🗑
|
||||
| A balance sheet reports financial information over a specific period of time. | False
🗑
|
||||
| A balance sheet reports financial information on a specific date and includes the assets, liabilities, and owner's equity. | True
🗑
|
||||
| When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue. | False
🗑
|
||||
| The date on a monthly income statement prepared on July 31 is written as | For Month Ended
July 31, 20xx
🗑
|
||||
| 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
🗑
|
||||
| Preparing financial statements at the end of each monthly fiscal period is an application of the accounting concept | Accounting
Period Cycle
🗑
|
||||
| Information needed to prepare an income statement's revenue section is obtained from a worksheet's Account Title column and | Income Statement
Credit column
🗑
|
||||
| A balance sheet reports a business's financial | condition on a
specific date
🗑
|
||||
| When preparing a balance sheet, the amount of owner's capital is obtained from | none of these
🗑
|
||||
| The formula for calculating the net income component percentage is | net income divided by total
sales equal net income
component percentage
🗑
|
||||
| Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account Title column and | Balance Sheet
Credit column
🗑
|
||||
| Assuring that financial statements contain all information necessary to understand a business's financial condition is an application of the accounting concept | Adequate
Disclosure
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
tpresley
Popular Accounting sets