Accounting Ch. 7

All financial information must be reported if good business decisions are going to be made. This is an application of which concept?

• Business Entity

• Matching Revenue with Expenses

• Objective Evidence

• Adequate Disclosure

The _______________________ reports financial information over a specific period of time (a fiscal period), indicating the financial progress of a business.

• Balance Sheet

• Income Statement

When revenue earned and the money spent (expenses) to earn that revenue are reported in the same fiscal period, this is an application of which concept?

• Matching Expenses with Revenue

• Objective Evidence

• Business Entity

• Adequate Disclosure

Information for the income statement is obtained from where?

• general ledger

• work sheet

• journal

• source docs

For a service business, which of the following is an acceptable financial ratio for expenses?

• 75%

• 60%

• 90%

• 50%

For a service business, which of the following is an acceptable financial ratio for net income?

• 55%

• 30%

• 10%

• 40%

The _______________________ reports financial information on a specific date, indicating the financial condition (strength) of a business.

• Balance Sheet

• Income Statement

Information for the balance sheet is obtained from where?

• work sheet

• general ledger

• journal

• source docs

The capital amount from the work sheet is the amount used on the balance sheet.

• True

• False