Accounting Chapter 7

Front

The date on a monthly income statement prepared on September 30 is written as:

Back

For Month Ended September 30, 20--

Front

The amount of net income calculated on an income statement is correct if: it is the same as the net income shown on the work sheet.

Back

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

Front

Preparing financial statements at the end of each monthly fiscal period is an application of the accounting concept:

Back

Accounting Period Cycle.

Front

Information needed to prepare an income statement's Expense section is obtained from a work sheet's account Title column and

Back

Income Statement Debit column.

Front

An income statement reports a business's financial:

Back

progress over a specific period of time.

Front

When preparing a statement of owner's equity, the amount of current owner's capital is calculated using amounts obtained from: the general ledger, the income statement, the journal, the work sheet.

Back

the work sheet.

Front

The formula for calculating the net income ratio is:

Back

net income divided by total sales.

Front

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

Back

Balance Sheet Debit column.

Front

Assuring that financial statements contain all information necessary to understand a business's financial condition is an application of the accounting concept:

Back

Adequate Disclosure.

Front

The net income calculated for the income statement and the net income on the work sheet can be different because of adjusting entries.

Back

False