Accounting Ch.6 (T/F)
If the trial balance columns are not equal and the difference if $50, the error most likely is a $25 amount written in the wrong column
True
If there are errors in the the work sheet's trial balance columns, it might be because not all general ledger account balances were copied in the trial balance column correctly
True
Making adjustments to general ledger accounts is an application of the matching expenses with revenue accounting concept
True
The value of the prepaid insurance coverage used during a fiscal period is an expense
True
Two financial statements are prepared from the information on the work sheet
True
When the income statement credit column total is greater than the income statement debit column total on a work sheet, the business has a net income
True
The accounting concept constant reporting is being applied when a word processing service business reports revenue per page one year and revenue per hour the next year
False
The balance of the supplies accounts plus the value of the supplies on hand equals the up-to-date balance of the supplies account
False
If an amount is written in an incorrect column on a work sheet, the error should be erased and the amount should be written in the correct column
False
May businesses choose a one- year fiscal period that ends during a period of high business activity
False
Net income on a work sheet is calculated by subtracting the income statement credit column total from the income statement debit column total
False