Accounting Unit 3

When total expenses are greater than total revenue, there

• Are no assets

• are no liabilities 

• is a net income

• is a net loss

A trial Balance on the worksheet consists of

• Accounts with credit Balances

• Accounts with debit balances

• All general ledger account titles and account

• general ledger accounts that have balances

On a worksheet, the drawing account balance is extended to the

• Balance sheet credit column

• Balance sheet debit column

• income statement credit column

• income statement debit column

On a worksheet, the first line of the heading contains the

• Current date

• Date of preperation

• Length of fiscal period

• Name of business

The general ledger accounts are listed on the worksheet in

• Alphabetical order

• Numerical order

• order as they appear in the general ledger

• random order

General ledger info is summarized on a columnar accounting form known as a/an

• balance sheet

• income statement

• post-closing trial balance

• Worksheet

All expense account balances on a work sheet are extended to the

• balance sheet credit column

• balance sheet debit column

• income statement credit column

• income statement debit column

If total revenue is less than total expenses, the business has a

• credit balance

• debit balance

• net income

• net loss

The proof of the equality of general ledger debits and credits is called a

• balance sheet

• income statement

• journal

• trial balance

When adjusting the prepaid insurance account on the work sheet, debit

• Insurance Expense and Credit Income Summary

• Insurance Expense and credit prepaid insurance

• prepaid insurance and credit income summary

• prepaid insurance and credit insurance expense