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