Question 1

The length of time for which a business summarizes and reports financial information.

Accepted Answer

Fiscal period

Question 2

A columnar accounting form used to summarize the general ledger information needed to prepare financial statments

Accepted Answer

Work sheet

Question 3

A proof of equality of debits and credits in a general ledger

Accepted Answer

Trial balance

Question 4

Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period

Accepted Answer

Adjustments

Question 5

A financial statement that reports assets, liabilities, and owner\'s equity on a specific date

Accepted Answer

Balance sheet

Question 6

A financial statement showing the revenue and expenses for a fiscal period

Accepted Answer

Income statement

Question 7

The difference between total revenue and total expenses when total revenue is greater

Accepted Answer

Net income

Question 8

The difference between total revenue and total expenses wen total expenses are greater

Accepted Answer

Net loss

Question 9

True or False:  The accounting concept Consistent Reporting is being applied when a delivery business reports the number of deliveries made one year and the amount of revenue received for deliveries made he next year.

Accepted Answer

False

Question 10

True or False:  An accounting period is known as a fiscal period

Accepted Answer

True

Question 11

True or False:  Journals, ledgers, and work sheets are considered permanent records

Accepted Answer

False

Question 12

True or False:  All general ledger account titles are listed on a trial balance in the same order as listed on the cart of accounts

Accepted Answer

True

Question 13

True or False:  The four questions asked when analyzing an adjustment are: Why? Where? When? and How?

Accepted Answer

False

Question 14

True or False:  The two accounts affected by the adjustment for supplies are Supplies and Supplies Expense

Accepted Answer

True

Question 15

True or False:  The two accounts affected by the adjustment for insurance are Prepaid Insurance Expense and Insurance

Accepted Answer

False

Question 16

True or False:  Totaling and ruling the Adjustments column of a work sheet are necessary to prove the equality of debits and credits

Accepted Answer

True

Question 17

True or False:  Two financial statements are prepared from the information on the work sheet

Accepted Answer

True

Question 18

True or False:  Net income on a work sheet is calculated by subracting the Income Statement Credit column total from the Income Statement Debit column total

Accepted Answer

False

Question 19

True or False:  If errors are found on a work sheet, they must be erased and corrected before any further work is completed

Accepted Answer

True

Question 20

True or False:  When two column totals are not in balance on the work sheet, the difference between totals is calculated and checked

Accepted Answer

True

Question 21

True or False:  If the difference between the totals of Debit and Credit columns on a work sheet can be evenly divided by 9, then the error is most likely in addition

Accepted Answer

False

Question 22

True or False:  If there are errors in the work sheet\'s Trial Balance columns, it might be because not all general ledger account balances were copied in the Trial Balance column correctly

Accepted Answer

True

Question 23

True or False:Errors in general ledger accounts should never be erased

Accepted Answer

True

Question 24

True or False:  Most errors occur in doing arithmetic

Accepted Answer

True

Question 25

True or False:  The best way to prevent errors is to use a calculator

Accepted Answer

False

Question 26

True or False:  Many businesses choose a one-year fiscal period that ends during a period of high business activity

Accepted Answer

False

Question 27

True or False:  Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue account concept

Accepted Answer

True

Question 28

True or False:  The balance of the supplies account plus the value of the supplies on hand equals the up-to-date balance of the supplies account

Accepted Answer

False

Question 29

True or False:  The value of the prepaid insurance coverage used during a fiscal period is an expense

Accepted Answer

True

Question 30

True or False:  When Income Statement Credit column total is greater than the Income Statement Debit column total on a work sheet, the business has a net income

Accepted Answer

True

Question 31

True or False:  If an amount is written in an incorrect column on a work sheet , the error should be erased and the amount should be written in the correct column

Accepted Answer

True

Question 32

True or False:  If the Trial Balance columns are not equal and the difference is $50.00, the error most likely is a $25.00 amount written in the wrong column

Accepted Answer

True

Question 33

True or False:  The accounting concept Consistent Reporting is being applied when a word processing service business reports revenue per page from the information on the work sheet

Accepted Answer

False

Question 34

True or False:  Two financial statement are prepared from the information on the work sheet

Accepted Answer

True

Question 35

True or False:  Net income on a work sheet is calculated by subtracting the Income Statement Debit column total

Accepted Answer

False

Question 36

True or False:  If there are errors in the work sheet\'s Trial Balance columns, it might be because not all general ledger accounts balances were copied in the Trial Balance column correctly

Accepted Answer

True

Question 37

Following the same accounting procedures in the same way in each accounting period is an application of the accounting concept _____.

Accepted Answer

Consistent Reporting

Question 38

Reporting changes in financial information for specific period of time in the the form of financial statements is an applications of the accounting concept _____.

Accepted Answer

Accounting Period Cycle

Question 39

On a trial balance, _____.

Accepted Answer

all general ledger account titles are listed

Question 40

Recording revenue from business activities and expenses associated with earning that revenue in the same accounting period is a application of the accounting concept _____.

Accepted Answer

Matching Expenses with Revenue

Question 41

On a work sheet, the balance of the owner\'s capital account is extended to the _____.

Accepted Answer

Balance Sheet Credit column

Question 42

A net loss is entered in the work sheets _____.

Accepted Answer

Income Statement Credit and Balance Sheet Debit columns

Question 43

If a pair of work sheet columns do not balance and the difference between the totals is an amount that appears elsewhere on the work sheet, the error is probably _____.

Accepted Answer

an amount that has not been extended

Question 44

If the Trial Balance columns are not equal and the difference is 1, the error often is _____.

Accepted Answer

in addition

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