Accounting Chapter 9 Final Exam Review

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

• True

• False

Net income or net loss is the difference between total revenue and total expenses over a specific period of time.

• True

• False

Return on sales is calculated by dividing net sales by net income.

• True

• False

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

• True

• False

A net income will increase the owner's capital account.

• True

• False

The statement of changes in owner's equity summarizes the effects on the capital account of the various business transactions that occurred during the period.

• True

• False

Current assets are those used up or converted to cash during the normal operating cycle of a business.

• True

• False