True/False
Indicate whether the statement is true or
false.
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1.
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The balance sheet accounts are the revenue, expenses, and owner's equity
accounts.
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2.
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Before the work sheet is complete, net income must be calculated and the work
sheet must be totaled and ruled.
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3.
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When two column totals are not in balance, the first step is to subtract the
smaller total from the larger total to find the difference.
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4.
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As each item in an account or a journal entry is verified, draw a line through
it so that anyone looking at the records will know that it is complete and correct.
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5.
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Errors in permanent records should never be erased.
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6.
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An example of a slide is $45.00 written as $54.00.
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7.
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If you find an incorrect amount on a work sheet, erase the error and replace it
with the correct amount.
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8.
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When a business pays cash for an expense in one fiscal period, but the expense
isn't used until a later period, the expense should be reported in the same fiscal period that
it is used to produce revenue.
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9.
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If an account has no balance, its account title is not listed on the trial
balance.
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10.
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Because a work sheet is used as a permanent record, it is prepared in pen or
saved on the computer.
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Matching
Use the word list provided
below. Not all words will be used; some may be used multiple times. Copy and paste from the list.
Misspellings will be counted as incorrect.
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A. | trial balance | G. | adjustments | B. | checking account | H. | debit Supplies Expense for $715.00 and credit
Supplies for $715.00 | C. | in the same order as they are listed on the
chart of accounts | I. | income
statement | D. | work sheet | J. | general ledger accounts | E. | fiscal period | K. | balance sheet | F. | net
income | L. | blank
endorsement |
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1.
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The length of time for which a business summarizes and reports financial
information is called a(n) ____.
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2.
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A financial statement showing the revenue and expenses for a fiscal period is
called a(n) ____.
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3.
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The difference between total revenue and total expenses when total revenue is
greater is called ____.
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4.
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A proof of the equality of debits and credits in a general ledger is called the
____.
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5.
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A financial statement that reports assets, liabilities, and owner's
liability is called a(n) ____.
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6.
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If the amount of supplies used during the period was $715.00, you should make
an adjusting entry to ____.
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7.
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A columnar accounting form used to summarize the general ledger information
needed to prepare financial statements is called a ____.
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8.
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General ledger account titles are listed on a trial balance ____.
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9.
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If a pair of work sheet columns does not balance and an error cannot be found
on the work sheet, look for an error in posting from the journal to the ____.
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10.
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Changes recorded on a work sheet to update general ledger accounts at the end
of a fiscal period are called ____.
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