DH Chapter 6 Accounting

A net loss is entered in the work sheet's?

• Income Statement Debit and Balance Sheet Credit columns

• Income Statement Credit and Balance Sheet Debit columns

• Income Statement Debit and Trial Balance Credit columns

• Balance Shee Debit and Trial Balance Credit columns

If a pair of work sheet columns do not balance and the difference between the totals is an amount that appears elsewhere on the work sheet, the error is probably

• an error in addition

• a slide

• an amount that has been written in the wrong column

• an amount that has not been extended

Reporting changes in financial information for a specific period of time in the form of financial statements is an application of the accounting concept

• Matching Expenses with Revenue

• Accounting Period Cycle

• Consistent Reporting

• Going Concern

If the Trial Balance columns are not equal and the difference is 1, the error often is

• Transposed numbers or a slide

• in writing an amount in the wrong column

• in posting

• in addition

Two financial statements are prepared from the information on the work sheet?

• True

• False

Journals, ledgers, and work sheets are considered permanent records.

• True

• False

Financial information may be reported any time a business needs it?

• True

• False

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

• Net Income

• Balance Sheet

• Work Sheet

• Income Statement

The difference between total revenue and total expenses when total revenue is greater.

• Net Income

• Net Loss

• All of the above

• None of the above

A proof of the equality of debits and credits in a general ledger.

• Fiscal period

• Adjustment Column

• Work Sheet

• Trial Balance