Accounting Chapter 6

Front

The adjusting entry to account for the use of supplies consists of

Back

a debit to Supplies Expense and a credit to Supplies

Front

On a worksheet, the adjusted balance of the Prepaid Insurance account is extended to:

Back

the Balance Sheet Debit column

Front

On the worksheet, the Balance Sheet columns should balance:

Back

after the net income amount is added to the Balance Sheet Credit column

Front

The adjustments made on the worksheet

Back

are recorded in the journal and then posted to the general ledger accounts.

Front

Adjusting Entries are

Back

updating entries for previously unrecorded expenses or revenues.

Front

If an amount is written in an incorrect column of a work sheet, the error should be erased and the amount should be written in the correct column.

Back

True

Front

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 received for the deliveries made the next year.

Back

False

Front

The heading on a work sheet contains the name of the business, the name of the report, and the date of the report.

Back

True

Front

If errors are found on a work sheet, they must be erased and corrected before any further work is completed.

Back

True

Front

Adjusting entries must be posted to the general ledger accounts.

Back

True