Accounting Chapter 8 Review

The asset, liability, and owner's equity accounts are extended to the _________ of the work sheet.

• Balance Sheet Section

• Income Statement Section

• Net Loss

A net loss is entered in the ______ column of the Income Statement section of the work sheet.

• credit

• debit

• trial balance

The _____ allows a business to match revenue against expenses as a means of measuring profit for the period.

• credit

• matching priciple

• trial balance

The first two columns on the works sheet are used to enter the _________.

• balance sheet

• income statement

• trial balance

_____________ is transferring balances from the Trial Balance section of the work sheet to either the Balance Sheet section or the Income Statement section.

• Extending

• Net Income

• Work Sheet

The amount of net income for the period is added to the Balance Sheet credit total because it increases the balance in the __________ account.

• capital

• income statement section

• ruling

The work sheet is a working paper and is prepared in pen.

• True

• False

A double rule under a column of figures means that the figures are to be added or subtracted.

• True

• False

All asset accounts are extended to the Balance Sheet section.

• True

• False

Amounts from the Trial Balance section are extended first to the Income Statement section.

• True

• False