2nd Semester Accounting I Final Review

An income Statement reports information over a period of time, indicating the financial progress of a business in earning a net income or a net loss.

• True

• False

When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue.

• True

• False

The owner's equity section of a balance sheet may report different kinds of details about owner's equity, depending on the need of the business.

• True

• False

All companies should have a total expenses component percentage that is not more than 80%.

• True

• False

The date on a monthly income statement prepared on July 31 is written as

• For Month Ended July 31, 2023

• July 31, 2023

• 2023, July 31

• none of the above

The amount of net income calculated on an income statement is correct if

• is the same as net income shown on the work sheet

• debits equal credits

• it is the same as the balance sheet

• none of the above

Journal entries recorded to update general ledger accounts at the end of a fiscal period.

• Closing Entries

• Journal Entries

• Adjusting Entries

• None of the above

A trial balance prepared after the closing entries are posted.

• Closing Entries

• Accounting Cycle

• Temporary Accounts

• Post-closing Trial Balance

Income Summary is

• an asset account

• a liability account

• a permanent account

• a temporary account

Information needed for journalizing the adjusting entries is obtained from the

• general ledger account Balance columns

• Work sheet's adjustments columns

• Income Statement

• Balance Sheet