accounting chapter 8

The asset, liability, and owner's equity accounts are extended to the ______ of the worksheet.

balance sheet section

A net loss is entered in the ______ column of the Income Statement section of the worksheet.

credit

If there is a net loss for the period, it is entered in the _____ column of the Balance Sheet section of the worksheet.

debit

A double rule under a column of figures means that the figures are to be added or subtracted.

false

A single rule across both amount columns of the Trial Balance section means that no more entries will be made.

false

A work sheet always covers a period of one month.

false

Revenue and expense accounts are listed in the Trial Balance section of the worksheet and in the ______ of the worksheet.

income statement section

The _____ allows a business to match revenue against expenses as a means of measuring profit for the period.

matching principle

A(n) _____ results when revenue is larger than expenses.

net income

____ means drawing a line under a column of amounts.

ruling

The first two columns on the worksheet are used to enter the _____.

trial balance

A net income for the period is the amount left after the expenses for the period have been subtracted from revenue.

true

A net loss decreases the balance in the owner's capital account.

true

A work sheet is prepared at the end of each fiscal period.

true

All asset accounts are extended to the Balance Sheet section.

true

Account titles are listed on the worksheet in alphabetical order.

false

After the net loss is calculated, it should be reflected in the debit column of the Income Statement section and the credit column of the Balance Sheet section.

false

All liability accounts are listed in the credit column of the Income Statement section.

false

Amounts from the Trial Balance section are extended first to the Income Statement section.

false

The work sheet is a working paper and is prepared in pen.

false

Total expenses for the period are reflected in the total of the credit column of the Income Statement section.

false

Preparing the work sheet is the sixth step in the accounting cycle.

true

The Trial Balance section contains entries for all accounts in the general ledger including those with zero balances.

true

A(n) _____ is a paper used to collect information from the general ledger accounts.

worksheet