accounting chapter 10 gilbertson

True or False: The capital account’s new balance after all closing entries are posted is verified by checking it with the amount of capital shown on the balance sheet at the end of the fiscal period.

• True

• False

An income statement reports information on a specific date indicating the financial condition of a business.

• True

• False

Net income increases a corporation's total owner's equity.

• True

• False

The amount of a dividend is normally calculated as

• the number of shares outstanding x percentage of dividend rate

• the number of shares outstanding x dollar amount per share

• a percentage of the balance in Common Stock

• the balance of the Retained Earnings.

Who is responsible for declaring a dividend?

• Owner

• CEO

• Finance Department

• Board of Directors

Which of the following is NOT a special column in the cash receipts journal?

• Cash Debit

• Cash Credit

• Accounts Receivable Credit

• Sales Credit

Double lines ruled across both amount columns of an income statement indicates that the amount has been verified.

• True

• False

True or False: To close a temporary account, an amount equal to its balance is recorded in the account on the side opposite to its balance.

• True

• False

For the transaction, paid cash on account, what source document would typically be used?

• Check

• Invoice

• Receipt

• Memo

A transaction in which money is received by a business.

• cash card

• cash receipt

• sales slip

• invoice