Chapter 8 Multiple Choice

Question 1

Which accounting concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?

Answer 1

Accounting Period Cycle

Question 2

Which accounting concept applies when expenses are reported in the same fiscal period that they are used to produce revenue?

Answer 2

Matching Expenses with Revenue

Question 3

Information needed for journalizing the adjusting entries is obtained from the _______.

Answer 3

Work sheet’s Adjustments columns

Question 4

After adjusting entries are posted, the supplies account balance will be equal to _______.

Answer 4

The cost of supplies on hand at the end of the fiscal period

Question 5

When revenue is greater than total expenses, resulting in a net income, the income summary account has _______.

Answer 5

Credit balance

Question 6

Information needed for recording the closing entries is obtained from the ________.

Answer 6

Work sheet’s Income Statement and Balance Sheet columns

Question 7

Income Summary is ______.

Answer 7

a temporary account