Chapter 6 Flashcards

1
Q

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

A

Fiscal period

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2
Q

A columnar accounting from used to summarize the general ledger information needed to prepare financial statements

A

Work sheet

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3
Q

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

A

Trial balance

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4
Q

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

A

Adjustments

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5
Q

A financial statement that reports assets, liabilities, and owners equity on a specific date

A

Balance sheet

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6
Q

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

A

Income statement

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7
Q

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

A

Net income

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8
Q

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

A

Net loss

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9
Q

A columnar accounting from used to summarize the general ledger information needed to prepare financial statements

A

Work sheet

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10
Q

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

A

Trial balance

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11
Q

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

A

Adjustments

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12
Q

A financial statement that reports assets, liabilities, and owners equity on a specific date

A

Balance sheet

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13
Q

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

A

Income statement

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14
Q

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

A

Net income

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15
Q

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

A

Net loss

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16
Q

The accounting concept consistent reporting is being applied when a delivery business reports revenue for the number of deliveries made one year and the amount of revenue received for the deliveries made the next year

A

False

17
Q

An accounting period is also known as a fiscal period

A

True

18
Q

Journals,ledgers,and worksheets are considered permanent records

A

False

19
Q

All general ledger account titles are listed on a trial balance in the same order as listed on the chart of accounts

A

True

20
Q

The four questions asked when analyzing an adjustment are: why?where? When? And How?

A

False

21
Q

The two accounts affected by the adjustment for supplies and supplies expense

A

True

22
Q

Totaling and ruling the adjustments columns of a work sheet is necessary to prove the equality of debits and credits

A

True

23
Q

Two financial statements are prepared from the information on the worksheet

A

True

24
Q

Net income on a work sheet is calculated by subtracting the income statement credit column total from the income statement debit column total

A

False

25
Q

If errors are found on a worksheet they must be erased and corrected before any further work is completed

A

True

26
Q

When two column totals are not in balance on the work sheet the difference between the two totals is calculated and checked

A

True

27
Q

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

A

False

28
Q

If there are errors in the work sheets trial balance columns it might be because not all general ledger account balances were copied in the trial balance column correctly

A

True

29
Q

Errors in general ledger accounts should never be erased

A

True

30
Q

Most errors occur in doing arithmetic

A

True

31
Q

The best way to prevent errors is to use a calculator

A

False