Accounting Chapter 6 Assessment

Which accounts are listed on the Trial Balance columns of a work sheet?

• all accounts from the general ledger even if they do not have a balance

• only accounts from the chart of accounts

• only accounts that have a ledger balance

• only accounts that were used during that fiscal period

The balance in supplies expense after adjusting entries are recorded represents......

• the amount of supplies used during the fiscal period

• the amount of supplies on hand

• the amount of supplies paid for with cash

• the amount of supplies lost due to shrinkage

If the trial balance columns are not equal and the difference can be evenly divided by 9, then what is the error likely to be?

• a transposed number

• most likely an addition error

• check for an entry in that amount

• look for an amount divisible by 9

Which two financial statements are prepared from the information on the work sheet?

• balance sheet and income statement

• capital statement and income statement

• balance sheet and capital statement

• balance sheet and expense statement

When does an asset become an expense?

• when it is used to earn revenue

• when it is stolen

• when it is used by the owner for personal use

• when cash is received

Which of the following is NOT a reason for accountants to use a work sheet?

• Report information to investors

• Summarize general ledger account balances to prove that debits equal credit

• Calculate the amount of net income or net loss for a fiscal period

• Separate general ledger account balances according to the financial statements to be prepared

An expense should be reported in the same fiscal periods it is used to earn revenue.

• matching revenue and expenses

• cash basis of accounting

• accrual basis of accounting

• income statement

Reporting income when the cash is received and expenses when cash is paid.

• cash basis of accounting

• matching revenue and expenses

• accrual basis of accounting

• income statement

Reporting income when it is earned and expenses when they are incurred not when cash is received.

• accrual basis of accounting

• matching revenue and expenses

• cash basis of accounting

• income statement

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

• net income

• net loss

• net adjustment

• trial balance