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Accounting Ch 8 Review

Total questions: 18

Worksheet time: 12mins

Name
Class
Date
1.

A work sheet is prepared at the end of each fiscal period.

a)

True

b)

False

2.

The work sheet is a working paper and is prepared in pen.

a)

True

b)

False

3.

Account titles are listed on the work sheet in alphabetical order.

a)

True

b)

False

4.

A double rule under a column of figures means that the figures are to be added or subtracted.

a)

True

b)

False

5.

A net income for the period is the amount left after the expenses for the period have been subtracted from revenue.

a)

True

b)

False

6.

All asset accounts are extended to the Balance Sheet section.

a)

True

b)

False

7.

Preparing the work sheet is the sixth step in the accounting cycle.

a)

True

b)

False

8.

Amounts from the Trial Balance section are extended first to the Income Statement section.

a)

True

b)

False

9.

A single rule across both amount columns of the Trial Balance section means that no more entries will be made.

a)

True

b)

False

10.

A net loss decreases the balance in the owner's capital account.

a)

True

b)

False

11.

After the net loss is calculated, it should be reflected in the debit column of the Income Statement section and the credit column of the Balance Sheet section.

a)

True

b)

False

12.

Total expenses for the period are reflected in the total of the credit column of the Income Statement section.

a)

True

b)

False

13.

The Trial Balance section contains entries for all accounts in the general ledger including those with zero balances.

a)

True

b)

False

14.

A work sheet always covers a period of one month.

a)

True

b)

False

15.

All liability accounts are listed in the credit column of the Income Statement section.

a)

True

b)

False

16.

Match the following

a)

net income

1.

A(n) ____ results when revenue is larger than expenses.

b)

Balance Sheet section

2.

The asset, liability, and owner's equity accounts are extended to the ____ of the work sheet.

c)

ruling

3.

____ means drawing a line under a column of amounts.

d)

credit

4.

A net loss is entered in the ____ column of the Income Statement section of the work sheet.

e)

Income Statement section

5.

Revenue and expense accounts are listed in the Trial Balance section of the work sheet and in the __

17.

Match the following

a)

matching principle

1.

This allows a busi. to match revenue against expenses as a means of measuring profit for the period

b)

work sheet

2.

A(n) ____ is a paper used to collect information from the general ledger accounts.

c)

trial balance

3.

The first two columns on the work sheet are used to enter the ____.

d)

debit

4.

If there is a net loss for the period, it is entered in the __ column of the Balance Sheet section

e)

extending

5.

_ is transferring balances from the TB section of the worksheet to either the BS or IS section

18.

Match the following

a)

net loss

1.

If the total of credit col. of the IS section is less than debit col., it is this...

b)

capital

2.

The amount of net income for the period is + to the BSheet credit total because it increa

c)

heading

3.

The ____ of the work sheet answers the questions "who?", "what?", and "when?".