Accounting Chapter 7

The date on a monthly statement of owner's equity prepared on May 31 is written as

• For Month Ended May 31, 20--

• May 31, 20--

• 20--, May 31

• none of the above

Information needed to prepare a statement of owner's equity is obtained from a work sheet's Account Title column and

• Income Statement columns

• Balance Sheet columns

• Adjustment columns

• none of the above

The amount of capital reported on a statement of owner's equity is calculated as

• Capital Account Balance + Net Income – Drawing Account Balance

• Capital Account Balance – Net Income – Drawing Account Balance

• Capital Account Balance + Net Income + Drawing Account Balance

• Capital Account Balance – Net Income + Drawing Account Balance

The date on a monthly balance sheet prepared on July 31 is written as

• For Month Ended July 31, 20--

• July 31, 20--

• 20--, July 31

• none of the above

Information needed to prepare a balance sheet's Liabilities section is obtained from a work sheet's Account Title column and

• Income Statement Debit column

• Income Statement Credit column

• Balance Sheet Debit column

• Balance Sheet Credit column.

The Full Disclosure accounting concept is applied when a company always prepares financial statements at the end of each monthly fiscal period.

• True

• False

Internal users of accounting information include company managers, officers, and creditors.

• True

• False

The statement of owner’s equity reports changes in the capital account for a period of time.

• True

• False

Information needed to prepare a statement of owner’s equity is obtained from the balance sheet.

• True

• False

When a business has a net loss, the current capital amount will be less than the capital account balance.

• True

• False