Ch 6 Accounting--Worksheet
Terms in this set (40)
A fiscal period is also known as an accounting period (T/F).
All fiscal periods must begin on January 1 (T/F).
Trial balance is a proof of the equality of debits and credits in the general ledger (T/F).
All general ledger account titles are listed on a trial balance even if some accounts do not have a balance (T/F).
The column in which an account balance is recorded on a trial balance shows whether an account has a debit or credit balance (T/F).
All account balances are written in the trial balance credit column (T/F).
A double line drawn across both trial balance columns shows that the two columns are to be totaled (T/F).
Making adjustments to general ledger accounts is an application of the matching expenses with revenue accounting concept (T/F).
Every adjustment has a debit and a credit part (T/F).
The value of the prepaid insurance coverage used during a fiscal period is an expense (T/F).
The adjustment for prepaid insurance is a debit to prepaid insurance and a credit to insurance expense (T/F).
A net loss results when total revenue exceeds total expenses (T/F).
Journals, ledgers, and worksheets are considered to be permanent accounting records (T/F).
false (worksheets are not permanent accounting records)
All general account ledger account titles are listed in a trial balance in the same order as listed on the chart of accounts (T/F).
The two accounts affected by the adjustment to supplies are supplies and supplies expense (T/F).
The two accounts affected by the adjustment to insurance are prepaid insurance expense and insurance (T/F).
false (you should credit prepaid insurance and debit insurance expense)
Totaling and ruling the adjustment columns of a worksheet is necessary to prove the equality of debits and credits (T/F).
Two financial statements are prepared from the information on a worksheet (T/F).
Net income on a worksheet is calculated by subtracting the Income Statment credit total from the Income Statement debit total (T/F).
false (subtract Income Statement debit total from the Income Statement credit total to get net income)
When two column totals are not in balance on a worksheet, the difference between the two column totals is calculated and checked (T/F).
If the difference between the debit and credit column totals on a worksheet can be evenly divided by 9 the error is probably in addition (T/F).
false (if the difference can be evenly divided by 9, the error is a slide or transposition (eg you wrote 45 instead of 54))
If there are errors in a worksheet's trial balance columns, it could be because not all general ledger account balances were copied into the trial balance amount columns correctly (T/F).
Errors in general ledger accounts should never be erased (T/F).
Most errors occur doing arithmetic (T/F).
Using a calculator will help prevent errors when totaling numbers but not all errors involve totaling numbers (T/F).
Following the same accounting procedures in each accounting period is an example of the accounting concept of?
Reporting changes in financial information over a specific period of time in the form of financial statements is an example of the accounting concept of?
accounting period cycle
A columnar form used to summarize general ledger information needed to prepare financial statements is?
On a trial balance?
all general ledger account titles are listed.
Changes recorded on a worksheet to update general ledger accounts at the end of a fiscal period are?
Reporting revenue from business activities and the expenses that arose from making that revenue is an application of the accounting concept?
matching expenses with revenue
On a worksheet the balance of cash is extended to the?
Balance Sheet debit column
On a worksheet the balance of the owner's capital account is extended to the?
Balance Sheet credit column
On a worksheet the balance of the Sales account is extended to the?
Income Statement Credit column
On a worksheet the balance of the Expense accounts are extended to the?
Income Statement Debit column
When total revenue is greater total expenses it results in a?
A net loss is recorded on a worksheet's?
Income Statement Credit and Balance Sheet Debit columns
If a pair of worksheet columns do not balance and the difference between the totals is a number that appears on the worksheet it is probably?
an amount that has not been extended
If the trial balance columns do not equal and the difference is 1 the error is likely?
If the trial balance columns are not equal and the difference can be divided by 9 the error most likely is?
in transposed number or slide (eg 54 instead of 45)