accounting ch 6 t f
many businesses choose a one year fiscal period that ends during a period of high business activity
false
net income on a worksheet is calculated by subtracting the income statement credit column total from the income statement debit column total
false
the accounting concept consistent 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 sheet of the supplies account plus the value of 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 worksheet the error should be erased and the amount should be written in the correct column
true
if the trial balance columns are not equal and the difference is $50, the error most likely is a $25 amount written in the wrong column
true
if there are errors in a worksheets 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 a general ledger account is an application of the account concept matching expenses with revenue
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 a worksheet
true
when the income statement credit column total is greater than the income statement debit column total on a worksheet, the business has a net income
true