Accounting: Chapter 7 Review (#2)

Front

The date on a monthly balance sheet prepared on July 31 is written as

Back

July 31, 20--

Front

Information needed to prepare a balance sheet's Assets section is obtained from a worksheet's Account Title column and

Back

Balance Sheet Debit column

Front

Information needed to prepare a balance sheet's Liabilities section is obtained from a worksheet's Account Title column and Balance Sheet Credit column.

Back

Balance Sheet Credit column

Front

The amount of capital reported on a balance sheet is calculated as

Back

Capital Account Balance + Net Income - Drawing Account Balance

Front

If a business wanted to show how the current capital balance was calculated, it would

Back

list the beginning capital balance, the net income, the withdrawals, and the ending capital balance on the balance sheet.

Front

Which is not an external user of a business's financial information? Bankers, Creditors, Managers, Customers

Back

Managers

Front

Which accounting concept is applied when financial statements contain all information necessary to understand a business's financial condition?

Back

Full Disclosure, Adequate Disclosure

Front

When Healthy Human prepares financial statements at the end of each monthly fiscal period, which accounting concept is being applied?

Back

Accounting Period Cycle

Front

Which accounting concept is applied when financial statements are prepared with the expectation that a business will remain in operation indefinitely?

Back

Going Concern

Front

Classify the account Sales

Back

Revenue