Accounting: Chapter 7 Review

Front

A balance sheet has three sections: heading, assets, and liabilities.

Back

False

Front

The date on a monthly income statement prepared on July 31 is written as

Back

For Month ended July 31, 20xx

Front

Information needed to prepare an income statement's revenue section is obtained from a work sheet's Account title column and

Back

Income statement credit column

Front

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, debits equal credits, it is the same as the balance sheet, none of these.

Back

it is the same as net income shown on the work sheet

Front

The formula for calculating the net income component percentage is

Back

net income/total sales

Front

Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account title column and ___?

Back

balance sheet credit column

Front

The formula for calculating net income is total revenue minus total expenses equals net income.

Back

True

Front

The net income calculated for the income statement and the net income on the work sheet must be the same.

Back

True

Front

The formula for calculating the total expenses component percentage is total expenses divided by total sales.

Back

True

Front

The current capital to be reported on a balance sheet is calculated as the capital account balance plus net income.

Back

False