Accounting Chapter 6

When expenses are higher than sales, this results in a net income.

• True
• False

Many businesses choose a one-year fiscal period that ends during a period of high business activity.

• True
• False

The balance in Prepaid Insurance after adjusting entries are recorded represents the amount of insurance premium still remaining.

• True
• False

The two accounts affected by the adjustment for supplies are Supplies and Supplies Expense.

• True
• False

A proof of the equality of debits and credits in a general ledger.

• balance sheet
• trial balance
• work sheet
• fiscal balance

The difference between total revenue and total expenses when total revenue is greater.

• net income
• net loss
• loss balance
• net balance

Changes recorded on the work sheet to update general ledger accounts at the end of a fiscal period.

• balance changes
• trial balance
• adjustments
• adjusting entries

A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.

• trial balance
• work sheet
• balance sheet
• income statement

The difference between total revenue and total expenses when total expenses in greater.

• net income
• net loss
• trial balance 
• trial loss

A financial statement showing the revenue and expenses for the fiscal period.

• income statement
• balance sheet
• trial statement
• income balance