Chap 18 Accounting Review T/F

Every adjustment affects one permanent and one temporary account.
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Terms in this set (14)
Every adjustment affects one permanent and one temporary account.
True
It is important to complete each section of the ten-column work sheet before moving on to the next section.
False
Like the special journals, each section of the work sheet is footed, totaled, proved, and ruled.
False
The value of merchandise on hand is most accurately determined by a physical inventory.
True
The value of the ending inventory is always more than the value of the beginning inventory.
False
If the Merchandise Inventory account is credited in the Adjustments section, it means that the ending inventory is greater than the beginning inventory.
False
The debit and credit parts of each adjustment are labeled with a small letter in parentheses.
True
The balance for Supplies in the Trial Balance section of the work sheet represents the beginning Supplies balance minus any supplies used during the period.
False
In the Adjustments section, Prepaid Insurance will normally be debited
True
The Adjustments section of the work sheet contains the adjusted balances of all general ledger accounts.
False
Federal Corporate Income Tax Payable is a liability account.TrueIn the Adjustments Credit column, the amount entered on the line for Prepaid Insurance is the amount of the premium that has expired during the period.TrueAmounts are extended from the Adjusted Trial Balance section of the work sheet first to the Income Statement section and then to the Balance Sheet section.FalseThe adjustments on the work sheet are the source of the information for the adjusting entries.True