Accounting - Chapter 6

Financial information may be reported any time a business needs it.

• True
• False

Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.

• True
• False

The balance of the supplies account plus the value of the supplies on hand equals the up-to-date balance of the supplies account.

• True
• False

If an amount is written in an incorrect column on a worksheet, the errors should be erased and the amount should be written in the correct column.

• True
• False

If the Trial Balance columns are not equal and the difference is $50, the error most likely is a $25 amount written in the wrong column.

• True
• False

The accounting concept Consistent Reporting is being applied when a word processing service business reports revenue per page one year and revenue per hours the next year.

• True
• False

Journals, ledgers, and worksheets are considered permanent records.

• True
• False

The two accounts affected by the adjustment for insurance are Prepaid Insurance Expense and Insurance.

• True
• False

Two financial statements are prepared from the information on the worksheet.

• True
• False

Net income on a worksheet is calculated by subtracting the Income Statement Credit column total from the Income Statement Debit column total.

• True
• False