Accounting Chapter 9

The source of information for completing the income statement

• income statement section of the balance sheet

• income statement

• balance sheet

• all of these

Financial statement that reports the net income or net loss for the fiscal period it covers is the

• income statement

• balance sheet

• changes in equity

The classification of balance sheet accounts are shown one under another in the report form.

• true

• false

Reports prepared to summarize the changes resulting from business transactions that have occurred during a fiscal period are called

• financial statements

• currents assets

• finances

Financial statement that is prepared to summarize the effects on the capital account of the various business transactions that occurred during the fiscal period is called

• statement of changes in owners equity

• statement of changes

This occurs when total revenue is greater than total expenses

• net income

• net loss

The amount by which current assets exceed current liabilities is known as

• working capital

• capital

When total revenue is less than total expenses

• net loss

• net income

Financial statement that is a report of the final balances in all asset, liability, and owner's equity accounts at the end of the fiscal period

• balance sheet

• current assets

The relationship between current assets and current liabilities is the current ratio.

• true

• false