Accounting Chapter 6 Review

The accounting concept Consistent Reporting is being applied when a delivery business reports revenue for the number of deliveries made one year and the amount of revenue received for the deliveries made the next year.

• True

• False

An accounting period is also known as a fiscal period.

• True

• False

Journals, ledgers, and work sheets are considered permanent records.

• True

• False

All general ledger account titles are listed on a trial balance in the same order as listed on the chart of accounts.

• True

• False

The two accounts affected by the adjustment for supplies are Supplies and Supplies Expense.

• True

• False

The two accounts affected by the adjustment for insurance are Prepaid Insurance Expense and Insurance.

• True

• False

Net income on a work sheet is calculated by subtracting the Income Statement Credit column total from the Income Statement Debit column total.

• True

• False

When two column totals are not in balance on the work sheet, the difference between the two totals is calculated and checked.

• True

• False

If errors are found on a work sheet, they must be erased and corrected before any further work is completed.

• True

• False

If the difference between the totals of Debit and Credit columns on a work sheet can be evenly divided by 9, then the error is most likely in addition.

• True

• False