Accounting-Chapter 8 Test Review

Drawing a line under a column of accounts is known as:

• Art

• Double ruling

• Ruling

• Totaling

On a worksheet, this sections explains the who, what, when:

• Balance sheet section

• Heading section

• Income statement section

• Trial balance section

A net income or net loss will increase or decrease what account:

• Assets

• Capital

• Liabilities

• Revenue

What section of the worksheet includes all general ledger accounts:

• Balance sheet

• Heading

• Income statement

• Trial balance

According to ______, expenses incurred in an accounting period are compared against revenue:

• Extending

• Heading

• Matching principle

• Ruling

When the Income Statement Debit is larger than the Income Statement Credit column, what occurs:

• Net income

• Net loss

• An error

• None of these

What section of the worksheet includes only the temporary accounts (revenues and expenses):

• Balance sheet

• Heading

• Income statement

• Trial balance

Where do you enter a net income on the balance sheet:

• Debit

• Credit

What section of the worksheet includes only the permanent accounts plus withdrawals:

• Balance sheet

• Heading

• Income statement

• Trial balance

A working paper used to collect information from the ledger accounts is called:

• Cash proof

• Extending

• Matching principle

• Worksheet