Accounting Ch 9 Test Review--2nd one

The Trial Balance section of the work sheet provides the information used in preparing the income statement.

• True
• False
• Acc

The income statement represents the basic accounting equation.

• True
• False

The heading is the same on all three financial statements.

• True
• False

The balance sheet reports the final balances of the permanent accounts at the end of the fiscal period.

• True
• False

The primary financial statements prepared for a sole proprietorship are the income statement and the balance sheet.

• True
• False

The balance sheet reports financial information __________.

• at the end of the fiscal period.
• at the beginning of the fiscal period.
• on a specific date.
• at the end of every month.

The information needed to prepare the income statement comes from the __________.

• Balance Sheet section of the work sheet.
• Income Statement section of the work sheet.
• Statement of changes in owner's equity.
• Work sheet.

The amount of net income or net loss reported on the income statement must match the amount shown on the __________.

• heading.
• work sheet.
• balance sheet.
• statement of changes in owner's equity.

A(n) __________ is the financial statement that reports the final balances in all asset liability, and owner's equity accounts at the end of the fiscal period.

• work sheet
• income statement
• balance sheet
• statement of changes in owner's equity

The __________ reports a business's net income or net loss over an entire fiscal period.

• work sheet
• heading
• income statement
• balance sheet