accounting test

an income statement isa summary of the revenues and expenses of a business as of a specific date

• true

• false

a statement of owners' equity reports the changes in owners equity for a period of time

• true

• false

the balance sheet represents the accounting equation

• true

• false

the chart accounts should be the same for each business

• true

• false

the T account got its name because it resembles the letter T

• true

• false

a drawing account represents the amount of withdrawals made by the owner

• true

• false

journal entries include both debit and credit for each transaction

• true

• false

the excess of revenue over the expenses incurred in earning the revenue is called capital

• true

• false

revenue is earned only when money is received

• true

• false

profit is the difference between

• assets and liabilities

• incoming cash and outgoing cash

• the assets purchased with cash contributed by the owner and the cash spent to operate the business

• the amounts received from customers for goods or services and the amount paid for the inputs used to provide the goods or services