Financial Statements

Which information is not included in the work sheet heading?

• The period covered

• Name of the accounting form

• Business name

• Accountant's name

Asset, liability and equity accounts are extended to

• balance sheet section

• income statement section

• retained earnings

• trial balance

Revenue and expense accounts are extended to

• retained earning statement

• balance sheet section

• income statement

• accounts payable section

How does net loss affect owner's equity?

• increases

• decreases

• no change

• indirectly

Temporary accounts are

• revenue and expense

• assets

• capital

• cash in bank

Mistakes in the General Journal are corrected this way before posting?

• cross out the error with a single line

• make a correcting entry

• erase it

• start over on a new sheet

What is the purpose of the (Step #5) Trial Balance Sheet?

• prove the Cash in Bank account is correct

• Check the Owner's Equity

• prove that the Ledger Debits and Credits are equal

• make the accountant earn their paycheck

Transferring Information from the general journal to the ledger accounts is known as________?

• posting

• copying

• extending

• calculating

Moving the accounts from one side of the worksheet (Step #6) to either the income statement or balance sheet is called__________?

• posting

• extending

• mending

• ruling

When revenue > expenses, then there is a

• Net Loss

• mistake in the math

• Net Income

• transposition error