CH 8 Accounting

Which accounting concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?

• Business Entity
• Accounting Period Cycle 
• Adequate Disclosure
• Consistent Reporting

Which accounting concept applies when expenses are reported in the same fiscal period that they are used to produce revenue?

• Business Entity
• Going Concern 
• Matching Expenses with Revenue
• Adequate Disclosure

Information needed for journalizing the adjusting entries is obtained from the 

• general ledger account Balance columns
• income statement
• work sheet's Adjustments column
• balance sheet

After adjusting entries are posted, the supplies account balance will be equal to 

• the cost of supplies used during the fiscal period
• the cost of the supplies on hand at the end of the fiscal period
• zero
• none of these

When revenue is greater than total expenses, resulting in a net income, the income summary account has a 

• debit balance 
• credit balance 
• normal debit balance
• normal credit balance

Information needed for recording the closing entries is obtained from the 

• general ledger accounts' Debit Balance columns
• work sheet's Income Statement and Balance Sheet columns
• balance sheet
• income statement

Income Summary is 

• an asset account
• a liability account
• a temporary account
• a permanent account

After the closing entries are posted, the owner's capital account balance should be the same as

• shown on the balance sheet for the fiscal period
• shown in the work sheet's Balance Sheet Debit column
• shown in the work sheet's Balance sheet Credit column
• shown in the work sheet's Income Statement Debit column

The accounts listed on a post-closing trial balance are

• general ledger accounts with balances after the closing entries are posted
• all general ledger accounts 
• those that have no balances after adjusting & closing entries
• those that appera in the work sheet's Trial Balance columns

The series of accounting activities included in recording financial information for a fiscal period.

• adjusting cycle
• accounting cycle
• permanent accounts
• closing entries