Accounting Chapter 7

Front

The Full Disclosure Accounting concept is applied when a company always prepare a financial statements at the end of each monthly fiscal period.

Back

False

Front

Internal users of accounting information include company managers, officers and creditors.

Back

False

Front

An income statement reports information on a specific date indicating the financial condition of a business.

Back

False

Front

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.

Back

True

Front

Information needed to prepare an income statement comes from the Account Title column and the Income Statement columns of a worksheet.

Back

True

Front

The Income Statement for a service business has five sections: Heading, Revenue, Expenses, Net Income or Net Loss, and Capital.

Back

False

Front

The Income Statement's account balances are obtained from the work sheet's Income Statement columns.

Back

True

Front

The net income on an income statement is verified by checking the balance sheet.

Back

False

Front

Double lines ruled across both amount columns of an income statement indicates that the amount has been verified.

Back

True

Front

A financial ratio is a comparison between two components of financial information.

Back

True