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- 1. Multiple Choice
An element of the income statement that informs the business of just how much money it is making
Net income
Creditors
Revenue
Income Statement
- 2. Multiple Choice
If Owner's Equity is $300 and Assets are $1500, the Liabilities are:
$1800
$1200
$300
$1500
- 3. Multiple Choice
From which accounting document is the trial balance prepared?
Journals
Ledgers
Source documents
Vouchers
- 4. Multiple Choice
This is the process of transferring amounts from journals to ledgers.
Classifying
Posting
Summarizing
Recording
- 5. Multiple Choice
This refers to the process of entering information in the journals which occurs immediately after the analysis phase of the accounting cycle.
Adjusting
Closing
Journalizing
Classifying
- 6. Multiple Choice
Adjusting entries are necessary because accounts are allowed to become inaccurate between financial statement dates.
True
False
- 7. Multiple ChoiceNet income on a work sheet is calculated by subtracting the Income Statement Debit column total from the Income Statement Credit column total.TrueFalse
- 8. Multiple ChoiceChanges recorded on a worksheet to update general ledger accounts at the end of a fiscal period.adjustmentsalignmentsbalancesexpenses
- 9. Multiple ChoiceThe length of time for which a business summarizes financial information and reports its financial performance.fiscal periodfiscal stagefull yeartrial balance
- 10. Multiple ChoiceA columnar accounting form used to summarize the general ledger information needed to p prepare financial statements.balance sheetincome statementworksheettrial balance
- 11. Multiple Choice
Journal entries recorded to update general ledger accounts at the end of a fiscal period.
adjusting entries
controlled entries
balance sheet
income statement
- 12. Multiple ChoiceA financial statement showing the revenue and expenses for a fiscal period.balance sheetincome statementworksheetfiscal period
- 13. Multiple ChoiceA proof of the equality of debits and credits in a general ledger.net incometrial entryincome statementtrial balance
- 14. Multiple ChoiceThe difference between total revenue and total expenses when total expenses are greater.income statementnet incomenet losswork sheet
- 15. Multiple ChoiceMaking adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.TrueFalse
- 16. Multiple Choice
If an amount is written in an incorrect column on a worksheet, the errors should be erased and the amount should be written in the correct column.
True
False
- 17. Multiple ChoiceIf the Trial Balance columns are not equal and the difference is $50, the error most likely is a $25 amount written in the wrong column.TrueFalse
- 18. Multiple ChoiceJournals, ledgers, and worksheets are considered permanent records.TrueFalse
- 19. Multiple ChoiceTwo financial statements are prepared from the information on the worksheet.TrueFalse
- 20. Multiple ChoiceOn a trial balanceall general ledger account titles are listedonly general ledger accounts that have balances are listedonly accounts with debit balances are listedonly accounts with credit balances are listed
- 21. Multiple ChoiceIf a pair of worksheet columns do not balance and the difference between the totals is an amount that appears elsewhere on the worksheet, the error is most likelyan error in additionan amount that has been written in the wrong columnan amount that has not been extendeda slide
- 22. Multiple ChoiceOn a worksheet, the balance of an expense account is extended to theBalance Sheet Debit columnBalance Sheet Credit columnIncome Statement Debit columnIncome Statement Credit column
- 23. Multiple ChoiceRecording revenue from business activities and expenses associated with earning that revenue in the same accounting period is an application of the accounting conceptMatching Expenses with RevenueAccounting Period CycleConsistent ReportingGoing Concern
- 24. Multiple ChoiceA net loss is entered in the worksheet'sIncome Statement Debit and Balance Sheet Credit columnsIncome Statement Credit and Balance Sheet Debit columnsBalance Sheet Debit and Trail Balance Credit columnsIncome Statement Debit and Trial Balance Credit columns
- 25. Multiple ChoiceIf the Trial Balance columns are not equal and the difference is 1, the error often istransposed numbers or a "slide"in writing an amount in the wrong columnin postingin addition
- 26. Multiple Choice
The value of the prepaid insurance coverage used during a fiscal period is an expense.
True
False
- 27. Multiple Choice
When the Income Statement Credit column total is greater than the Income Statement Debit column total on a worksheet, the business has a net income.
True
False
- 28. Multiple Choice
If there are errors in the worksheet's Trial Balance columns, it might be because not all general ledger account balances were copied in the Trial Balance column correctly.
True
False
- 29. Multiple Choice
The first two columns of the Work Sheet which contain the balances from the _________________.
Balance Sheet
General Ledger
Income Statement
Journal
- 30. Multiple Choice
The date on a work sheet should be labeled as:
For Month Ended April 30, 20xx
April 30, 20xx
- 31. Multiple Choice
The difference between revenue and expenses when revenue is greater.
net income
net loss
- 32. Multiple Choice
The difference between revenue and expenses when expenses are greater.
net income
net loss
- 33. Multiple Choice
The amount of supplies used during the fiscal period will be recorded is what account?
Supplies
Insurance
Supplies Expense
Insurance Expense
- 34. Multiple Choice
A balance sheet is a financial statement that reports assets, liabilities, and owner’s equity for a(n):
month
day
year
week
- 35. Multiple Choice
A single line under each amount column on a work sheet means the amounts:
need to be added
have already been added
lines don't matter
are verified as correct
- 36. Multiple Choice
Double lines under each amount column on a work sheet means the amounts:
need to be added
are not correct
lines don't matter
have been added and are verified as correct
- Answer choicesTagsAnswer choicesTags