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