Study Guide 7 – Part 3 – Analyzing Income Statement Procedures – Flashcards
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The date on a monthly income statement prepared on July 31 is written as (A) For Month Ended July 31, 20-- (B) July 31, 20-- (C) 20--, July 31 (D) none of the above
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(A) For Month Ended July 31, 20--
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Information needed to prepare an income statement's revenue section is obtained from a work sheet's Account Title column and (A) Income Statement Debit column (B) Income Statement Credit column (C) Balance Sheet Debit column (D) Balance Sheet Credit column
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(B) Income Statement Credit column
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Information needed to prepare an income statement's expense section is obtained from a work sheet's Account Title column and (A) Income Statement Debit column (B) Income Statement Credit column (C) Balance Sheet Debit column (D) Balance Sheet Credit column
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(A) Income Statement Debit column
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The amount of net income calculated on an income statement is correct if (A) it is the same as net income shown on the work sheet (B) debits equal credits (C) it is the same as the balance sheet (D) none of the above
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(A) it is the same as net income shown on the work sheet
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The formula for calculating the net income component percentage is (A) net income is the same as net income shown on the work sheet (B) debits equal credits (C) it is the same as the balance sheet (D) none of the above
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(A) net income divided by total sales equals net income component percentage
