Trial Balance Adjustments ATB I/S

Only accounts with a balance are listed on a trial balance section of the worksheet.

• true

• false

Answer explanation

remember income summary didn't have a balance, and it was listed. Each account a business creates at the beginning of the fiscal year whether with a balance or not is listed on the trial balance

The two accounts affected by the adjustment for supplies is Supplies and Supplies Expense

• true

• false

Answer explanation

you will credit supplies the amount used and debit supplies expense

The balance in Prepaid Insurance after adjusting entries are calculated and recorded on the worksheet represents the amount of insurance premium still remaining

• true

• false

Answer explanation

prepaid insurance beginning balance minus what is used = what is left

Totaling and ruling the Adjustments columns of a work sheet are necessary to prove the equality of debits and credits.

• true

• false

The income statement and balance sheet are prepared from the Trial Balance columns on the work sheet

• true

• false

Answer explanation

you will need to consider adjustments when completing the income statement and balance sheet

Net Income on a work sheet is calculated by subtracting the Income Statement Debit column total from the Income Statement Credit column total

• true

• false

The business shows a net loss if the credit number on the income statement is larger than the debit number.

• true

• false

Answer explanation

credit =sales, if credit is bigger, then it is net income

When two columns do not balance on the worksheet, you add the debit and credit columns together to see the difference to help find your error.

• true

• false

Answer explanation

you would subtrace

A fiscal period consisting of 12 consecutive months is

• monthly fiscal period

• yearly fiscal period

• fiscal year

• none of the answers apply to this definition

Answer explanation

fiscal year is 12 consecutive months

the proof of the equality of debits and credits in a general ledger is found on what accounting form?

• worksheet

• balance sheet

• income statement

• net income

Answer explanation

the trial balance proves this. it is the first section of the worksheet