Accounting: Chapters 6-8 Review

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

• 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 accounting concept __ is applied when a word processing service calculates and reports revenue per page the same way every fiscal period.

The value of prepaid insurance left at the end of a fiscal period is an asset to the business.

• True

• False

After adjustments are made, the expenses incurred to earn revenue are reported in the same fiscal period as the revenue is earned and reported would be an application of which accounting concept?

The balance sheet reports the financial __ of a business.

Which is not a purpose of completing a work sheet?

• To plan out adjustments

• To determine net income/loss

• To assist in preparing financial statements

• To complete closing entries

Which columns of a work sheet allow a business to make sure debits and credits equal in the general ledger?

• Trial Balance

• Adjustment

• Income Statement

• Balance Sheet

When all relevant financial information is reported on a business' financial statements to help owners, managers, lenders and investors make good business decisions, which accounting concept is being applied?

Information needed to prepare an income statement's expenses 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