Acct 3 Ch06 Review

What is written on the three-line heading on a work sheet?

• Name of the business

• Name of the Report

• Date of the Report

• All of the above

What general ledger accounts are listed in the Trial Balance columns of a work sheet?

• All general ledger accounts are listed in the Trial Balance columns of a work sheet, even if some accounts do not have balances.

• Only Assets, Liabilities, & Owner's Equity.

• Only Sales & Expenses.

• Only accounts with a balance.

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

• Fiscal Year.

• Fiscal Period.

• Annual Time.

• End of Month.

A columnar accounting form used to summarize the general ledger information needed to prepare financial statements is called a

• Balance Sheet.

• Income Statement.

• Financial Statement.

• Worksheet.

The total of all debit account balances must equal the total of all credit account balances. A proof of the equality of debits and credits in a general ledger is called a

• Proof.

• Balance Sheet.

• Trial Balance.

• Worksheet Balance.

Reporting income when earned and expenses when incurred is called

• Cash-based Accounting.

• Accrual-based Accounting.

• Trial balance.

• Accounting.

Reporting income when the cash is received and expenses when the cash is paid.

• Cash-based Accounting.

• Accrual-based Accounting.

• Trial balance.

• Accounting.

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

• Trial Balance

• Closing Balance

• Changes

• Adjustments

Which two accounts must be adjusted at the end of the fiscal period?

• Supplies & Prepaid Insurance.

• Prepaid insurance & cash.

• Accounts Payable & Supplies.

• Accounts Receivable & Supplies.

A financial statement that reports assets, liabilities, and owner’s equity on a specific date.

• Worksheet

• Income Statement

• Balance Sheet

• Cash Flow Statement