Chapter 9 Accounting- Change in Equity

The balance sheet is prepared before the statement of changes in owner's equity.

• True

• False

The income statement represents the basic accounting equation.

• True

• Fase

A net income will increase the owner's capital account.

• True

• False

The revenue, expense, and the Income Summary accounts are included on the statement of change in owner's equity.

• True

• False

The information on the statement of changes in owner's equity is used in preparing the income statement.

• True

• False

Net income or net loss is the difference between total revenue and total expenses over a specific period of time.

• True

• False

The statement of changes in owner's equity summarizes the effects on the capital account of the various business transactions that occurred during the period.

• True

• False

The net income or net loss reported on the income statement must be the same as the net income of net loss calculated on the work sheet.

• True

• False

What is the amount of the net income or net loss for the period?

During the period, the owner invested an additional $9,000 in the business. What was the balance of the capital account at the beginning of the period?