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WorksheetsAcc. Ch 7 Review
Total questions: 27
Worksheet time: 14mins
Name
Class
Date
1.
The Owner's Capital amount reported on a balance sheet is calculated as: capital account balance plus drawing account balance less net income?
a)
True
b)
False
2.
When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue?
a)
False
b)
True
3.
Reporting in the same fiscal period the revenue earned and the expenses incurred to earn that revenue is an application of the accounting concept matching expenses with revenue
a)
True
b)
False
4.
A balance sheet reports financial information on a SPECIFIC DATE and includes the assets, liabilities, and owner's equity.
a)
False
b)
True
5.
A balance sheet reports financial information over a SPECIFIC PERIOD OF TIME
a)
True
b)
False
6.
An amount written in parentheses on a financial statement indicates a loss
a)
False
b)
True
7.
Information needed to prepare an income statement comes from the trial balance columns and the income statement columns of a work sheet
a)
True
b)
False
8.
The Matching Expenses with Revenue account concept is applied when the revenue earned and the expenses incurred to earn that revenue are reported in the same fiscal period
a)
True
b)
False
9.
An income statement reports information over a period of time and shows either a net income or a net loss.
a)
True
b)
False
10.
A component percentages is the percentage relationship between one financial statement item and the total that includes that item
a)
True
b)
False
11.
Component percentages on an income statement are calculated by dividing sales and total expenses by net income
a)
True
b)
False
12.
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
a)
True
b)
False
13.
The current capital on a balance sheet is calculated as, the capital account plus net income = the current capital
a)
True
b)
False
14.
The financial condition of a business refers to its financial strength.
a)
True
b)
False
15.
The formula for calculating the total expenses component percentage is: total expenses divided by total sales = component
a)
True
b)
False
16.
For a service business, the revenue reported on an income statement includes components for total sales equals total expenses.
a)
True
b)
False
17.
On an income statement, double lines are ruled across both amount columns to indicate that debits equal credits.
a)
True
b)
False
18.
The Adequate Disclosure accounting concept is applied when financial statements contain all information necessary to understand a business's financial condition.
a)
True
b)
False
19.
Preparing financial statements at the end of the monthly fiscal period is this accounting concept
a)
Adequate Disclosure
b)
Going Concern
c)
Objective Evidence
d)
Accounting Period Cycle
20.
Assuring that financial statement contain all information necessary to understand a business's financial condition is
a)
Adequate Disclosure
Going Concern
Objective Evidence
Going Concern
Objective Evidence
b)
Accounting Period Cycle
c)
Objective Evidence
d)
Going Concern
21.
A balance sheet reports financial
a)
condition over a period of time
b)
progress over a period of time
c)
condition on a specific date
d)
progress on a specific date
22.
The date on an income statement is written for July 31 as
a)
The time ended, July 31
b)
July 31
c)
20--, July 31
d)
For Month Ended, July 31
23.
Information needed to prepare an income statement revenue section is taken from
a)
Income Statement - Debit Column
b)
Income Statement - Credit Column
c)
Balance Sheet - Debit Column
d)
Balance Sheet - Credit Column
24.
The income statement is correct if
a)
The net income matches the work sheet
b)
The debits equal credits
c)
it is the same net income on the balance sheet
d)
none of these
25.
The formula for calculating net income component percentage is
a)
total sales divided by total expenses
b)
total sales divided by net income
c)
total sales minus total expenses divided by net income
d)
net income divided by total sales
26.
Information needed to prepare a balance sheet liabilities section is taken from
a)
Income Statement Debit Column
b)
Income Statement Credit Column
c)
Balance Sheet Debit Column
d)
Balance Sheet Credit Column
27.
The amount of owner's capital on the balance sheet is calculated using the amount from
a)
the work sheets Balance Sheet Columns
b)
the income statement
c)
the general ledger
d)
None of these
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