WorksheetsAccounting Chapter 7
Total questions: 25
Worksheet time: 18mins
The date on a monthly statement of owner's equity prepared on May 31 is written as
For Month Ended May 31, 20--
May 31, 20--
20--, May 31
none of the above
Information needed to prepare a statement of owner's equity is obtained from a work sheet's Account Title column and
Income Statement columns
Balance Sheet columns
Adjustment columns
none of the above
The amount of capital reported on a statement of owner's equity is calculated as
Capital Account Balance + Net Income – Drawing Account Balance
Capital Account Balance – Net Income – Drawing Account Balance
Capital Account Balance + Net Income + Drawing Account Balance
Capital Account Balance – Net Income + Drawing Account Balance
The date on a monthly balance sheet prepared on July 31 is written as
For Month Ended July 31, 20--
July 31, 20--
20--, July 31
none of the above
Information needed to prepare a balance sheet's Liabilities section is obtained from a work sheet's Account Title column and
Income Statement Debit column
Income Statement Credit column
Balance Sheet Debit column
Balance Sheet Credit column.
The Full Disclosure accounting concept is applied when a company always prepares financial statements at the end of each monthly fiscal period.
True
False
Internal users of accounting information include company managers, officers, and creditors.
True
False
The statement of owner’s equity reports changes in the capital account for a period of time.
True
False
Information needed to prepare a statement of owner’s equity is obtained from the balance sheet.
True
False
When a business has a net loss, the current capital amount will be less than the capital account balance.
True
False
On the balance sheet, the current capital amount is taken from the work sheet.
True
False
An income statement reports information on a specific date indicating the financial condition of a business.
True
False
The Matching Expenses with Revenue accounting concept is applied when the revenue earned and the expenses incurred to earn that revenue are reported in the same fiscal period.
True
False
Information needed to prepare an income statement comes from the Account Title column and the Income Statement columns of a work sheet.
True
False
The income statement for a service business has five sections: heading, Revenue, Expenses, Net Income or Net Loss, and Capital.
True
False
The income statement's account balances are obtained from the work sheet's Income Statement columns.
True
False
The net income on an income statement is verified by checking the balance sheet.
True
False
Double lines ruled across both amount columns of an income statement indicate that the amount has been verified.
True
False
A financial ratio is a comparison between two components of financial information.
True
False
Financial ratios on an income statement are calculated by dividing sales and total expenses by net income.
True
False
When a business has two different sources of revenue, both revenue accounts are listed on the income statement.
True
False
An amount written in parentheses on a financial statement indicates a negative amount.
True
False
A balance sheet reports financial information on a specific date and includes the assets, liabilities, and owner's equity.
True
False
The position of the total asset line on the balance sheet is determined after the Equities section is prepared.
True
False
Double lines are ruled across the balance sheet columns to show that the column totals have been verified as correct.
True
False
