Chapter 7 Accounting Test
The date on a monthly income statement prepared on July 31 is written as __.
For Month Ended July 31, 20--
Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account Title column and __.
Balance Sheet Credit column
Information needed to prepare a balance sheet assets section is obtained from a work sheet's Account Title column and __.
Balance Sheet Debit column
The sections of an income statement are __.
heading, revenue, expenses, and net income or net loss
The amount of net income calculated on an income statement is correct if __.
it is the same as net income shown on the work sheet
The formula for calculating the net income component percentage is __.
net income divided by total sales equals net income component percentage
An income statement reports a business's financial __.
progress over a specific period of time
When preparing a balance sheet, the amount of owner's capital is calculated using amounts obtained from __.
the work sheet's Balance Sheet columns
The formula for calculating the total expenses component percentage is __.
total expenses divided by total sales equals total expense component percentage
Preparing financial statements at the end of each monthly fiscal period is an application of the accounting concept __.
Accounting Period Cycle
Assuring that financial statements contain all information necessary to understand a business's financial condition is an application of the accounting concept __.
Adequate Disclosure
Information needed to prepare an income statement's revenue section is obtained from a work sheet's Account Title column and __.
Income Statement Credit column
Information needed to prepare an income statement's expense section is obtained from a work sheet's Account Title column and __.
Income Statement Debit column
The percentage relationship between one financial statement item and the total that includes that item is __.
a component percentage
A balance sheet reports a business's financial __.
condition on a specific date