CH 6 TEST ACCOUNTING

Only accounts with a balance are listed in the Trial Balance columns of a work sheet.

• True
• False

If the Trial Balance columns are not equal and the difference can be evenly divided by 9, then the error most likely is a transposed number.

• True
• False

When the Income Statement Debit column total is greater than the Income Statement Credit column total on a work sheet, the business has a net income.

• True
• False

The amount of the supplies used during a fiscal period is an expense.

• True
• False

Reporting income when it is earned and expenses when they are incurred.

• cash basis of accounting
• accrual basis of accounting
• income basis of accounting
• balance basis of accounting

Changes recorded on a worksheet to update general ledger accounts at the end of a fiscal period.

• adjustments
• alignments
• balances
• expenses

The difference between total revenue and total expenses when total revenue is greater.

• Netting it All
• Net Loss
• Net Income
• Revenue

The length of time for which a business summarizes financial information and reports its financial performance.

• fiscal period
• fiscal stage
• full year
• trial balance

A columnar accounting form used to summarize the general ledger information needed to p prepare financial statements.

• balance sheet
• income statement
• worksheet
• trial balance

Journal entries recorded to update general ledger accounts at he end of a fiscal period.

• adjusting entries
• controlled entries
• balance sheet
• income statement