Chapter 6-Test A:Part 2: Analyzing Accounting Practices
True
Two financial statements are prepared from the information on the work sheet
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
True
The amount of the supplies used during a fiscal period is an expense
True
Adjusting entries must be posted to the general ledger accounts
True
If an amount is written in an incorrect column of a work sheet, 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 can be evenly divided by 9, then the error most likely is a transposed number
False
Many businesses choose a one-year fiscal period that ends during a period of high business activity
True
Net income on a work sheet is calculated by subtracting the Income Statement Debit column total from the Income Statement Credit column total
False
Only accounts with a balance are listed in the Trial Balance columns of a worksheet
False
When the Income Statement Debit column total is greater than the Income Statement Credit column total on a work sheet, the business has a net income