chpt 6 review acctg I

1. The length of time for which a business summarizes and reports financial information is called a(n)

• annual reporting pd
• fiscal pd
• accounting pd
• financial pd

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

• column sheet
• summary sheet
• work sheet
• ledger sheet

3. Because a work sheet is used as a permanent record, it is prepared in pen or saved on the computer.

• True
• False

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

• Trial balance
• proof
• statement 
• balance sheet

5. General ledger account titles are listed on a trial balance a. in the same order as they are listed on the chart of accounts.

• same order as chart of accts.
• alphabetical order
• amount order greatest to least
• amount order from least to greates

6. If an account has no balance, its account title is not listed on the trial balance.

• true

• false

7. When a business pays cash for an expense in one fiscal period, but the expense isn't used until a later period, the expense should be reported in the same fiscal period that it is used to produce revenue.

• true
• false

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

• entries
• corrections
• adjustments
• updates

9. A financial statement that reports assets, liabilities, and owner's liability is called a(n)

• income statement

• balance sheet

• cash flow statement

• equity statement