NEW
Font size
WorksheetsAccounting Chapter 16
Total questions: 25
Worksheet time: 25mins
In the preparation of financial statements, accounting principles are applied differently from one fiscal period to the next.
True
False
Every amount on a financial statement is accompanied by a related discription.
True
False
Data needed to prepare the Liabilities section of a balance sheet are obtained from the Debit column of an adjusted trial balance.
True
False
The difference between an asset's account balance and its related contra account balance is known as its book value.
True
False
The amount of dividends paid during the year is presented on the income statement.
True
False
Interest income is reported on the income statement in a section labeled Other Revenue.
True
False
Operating revenue less cost of merchandise sold equals net income.
True
False
Total operating expenses on an income statement are deducted from gross profit to find income from operations.
True
False
Increasing sales revenue while keeping cost of merchandise sold the same will increase gross profit.
True
False
All the information required to prepare a statement of stockholder's equity is obtained from the income statement and the adjusted trial balance.
True
False
When more detailed information about an item on a financial statement is needed, a supporting schedule may be prepared.
True
False
Interest earned on notes receivable is reported in the Operating Revenue section of an income statement.
True
False
Beginning merchandise inventory less purchases made during the fiscal period plus ending inventory equals cost of merchandise sold.
True
False
On an income statement, vertical analysis percentages are calculated by dividing the amount on each line by the amount of operating expenses.
True
False
The operating revenue remaining after cost of merchandise sold has been deducted is
gross profit
cost of merchandise sold
net sales
total sales
The income from operations is calculated by subtracting operating expenses from
revenue
net sales
gross profit
cost of merchandise sold
One way to increase gross profit is to
decrease operating expenses
decrease sales revenue
increase sales revenue
increase cost of merchandise sold
A financial statement that reports the amount of dividends is
an income statement
a balance sheet
a statement of stockholders' equity
work sheet
The total original price of all merchandise sold during a fiscal period is called
the cost of merchandise sold
the cost of goods sold
the cost of sales
all of these
In the accounting cycle, closing entries are journalized and posted
after adjusting entries are posted to the general ledger.
after the financial statements are prepared.
after the adjusted trial balance is prepared.
before the adjusted trial balance is prepared.
To close income summary when there is a net loss:
debit capital stock; credit retained earnings
debit retained earnings; credit income summary
debit income summary; credit retained earnings
debit cash; credit income summary
The amounts needed for closing entries are obtained from the work sheets
trial balance and balance sheet columns
income statement and balance sheet columns
adjusting and balance sheet columns
balance sheet columns
The post closing trial balance shows all subsidiary ledger account balances.
True
False
Accumulated depreciation is classified as a(n)
asset
contra asset
liability
stockholder's equity
Interest Receivable is classified as a(n)
asset
contra asset
liability
stockholder's equity
