Accounting Chapter 8
debit
A net income is entered in the ______ column at the bottom of the Income Statement section.
credit
A net income is entered in the _______ column of the Balance Sheet section.
credit
A net loss is entered in the ______ column of the Income Statement section.
work sheet
A paper used to collect information from the general ledger accounts is a(n) ______
work sheet
A working paper used to collect information from the ledger accounts is a(n) ________.
net income
A(n) ________ results when revenue is larger than expenses.
matching principle
According to the _______, expenses incurred in an accounting period are matched against revenue for the same period.
Balance Sheet Section
Balance Sheet Section or Income Statement Section? - Office Equipment
Balance Sheet Section
Balance Sheet Section or Income Statement Section? - Accounts Payable-- Kathleen Rowe
Balance Sheet Section
Balance Sheet Section or Income Statement Section? - Accounts Receivable -- James Yun
Income Statement Section
Balance Sheet Section or Income Statement Section? - Advertising Expense
Balance Sheet Section
Balance Sheet Section or Income Statement Section? - Angel Torres, Capital
Balance Sheet Section
Balance Sheet Section or Income Statement Section? - Angel Torres, Withdrawals
Balance Sheet Section
Balance Sheet Section or Income Statement Section? - Cash in Bank
Income Statement Section
Balance Sheet Section or Income Statement Section? - Delivery Expense
Income Statement Section
Balance Sheet Section or Income Statement Section? - Sales Revenue
Credit
Debit or Credit: Accounts Payable
Debit
Debit or Credit: Accounts Receivable
Credit
Debit or Credit: Capital
Debit
Debit or Credit: Cash In Bank
Credit
Debit or Credit: Commissions Revenue
Debit
Debit or Credit: Office Equipment
Debit
Debit or Credit: Utilities Expense
Debit
Debit or Credit: Withdrawals
ruling
Drawing a line under a column of amounts is known as ________.
net loss
If the total of the credit column of the Income Statement section is less than the debit column, there is a ______ for the period
I
Indicate whether the following account or item increases or decreases the capital account with an "I" or "D": - Admissions Revenue
D
Indicate whether the following account or item increases or decreases the capital account with an "I" or "D": - Kate Wagner, Withdrawals
I
Indicate whether the following account or item increases or decreases the capital account with an "I" or "D": - Net Income
D
Indicate whether the following account or item increases or decreases the capital account with an "I" or "D": - Net Loss
I
Indicate whether the following account or item increases or decreases the capital account with an "I" or "D": - Owner's Investment
D
Indicate whether the following account or item increases or decreases the capital account with an "I" or "D": - Rent Expense
D
Indicate whether the following account or item increases or decreases the capital account with an "I" or "D": - Utilities Expense
F
T or F. Amounts from the Trial Balance section are extended first to the Income Statement section
T
T or F. The Trial Balance section will have entries for all accounts in the general ledger including those with zero balances.
T
T or F. The work sheet is used to pull together all the information needed to prepare the financial statements and complete the end-of-period activities.
T
T or F. A double rule across both amount columns of the Trial Balance section means that no more entries will be made.
F
T or F. A ledger account having a zero balance is not listed on the Trial Balance section of the work sheet.
T
T or F. A net income for the period is the amount left after the expenses for the period have been subtracted from revenue.
T
T or F. A net loss decreases owner's equity
T
T or F. A net loss decreases the balance in the owner's equity account
T
T or F. A net loss for the period is entered in the debit column of the Balance Sheet sections
F
T or F. A net loss occurs when expenses are less than revenue.
F
T or F. A single rule under a column of amounts means that no other amounts may be added to or subtracted from that column.
T
T or F. A single rule under a column of amounts means that the amounts are ready to be added or subtracted
F
T or F. A work sheet always covers a period of one month.
F
T or F. Account names are listed on the work sheet in alphabetical order
T
T or F. Account titles are listed on the work sheet in the same order as they appear in the general ledger.
T
T or F. Accounts are listed on the work sheet in the same order as they appear in the general ledger.
T
T or F. All asset accounts are extended to the Balance Sheet section.
F
T or F. All liability accounts are listed in the credit column of the Income Statement section
T
T or F. Amounts from the Trial Balance sections are first extended to the Balance Sheet sections.
F
T or F. Extending an amount means to multiply it by another number
F
T or F. If the debit column of the Income Statement section of the work sheet is greater than the credit column of the Income Statement section, there is a net income for the period.
T
T or F. Net income is revenue earned in excess of expenses
T
T or F. Preparing a work sheet is the sixth step in the accounting cycle
T
T or F. The heading in a work sheet answers the questions who, what, and where.
F
T or F. The length of an accounting period can vary from one accounting cycle to another
T
T or F. The matching principle required that expenses incurred for an accounting period be matched with the revenue earned during the same period.
F
T or F. The maximum period covered by the accounting cycle is one month.
F
T or F. The work sheet has four sections: the heading, the Trial Balance section, the Income Statement Section, and the Balance Sheet section.
F
T or F. The work sheet is prepared in pen because it is a formal document
F
T or F. Total expenses for the period are reflected in the totals of the credit column of the Income Statement section and the credit column of the Balance Sheet section.
matching principle
The _______ allows a business to match revenue against expenses as a means of measuring profit for the period.
heading
The _______ of the work sheet answers the questions who, what, and when.
Balance Sheet section
The _______ of the work sheet includes all permanent general ledger accounts.
heading
The ________ explains the who, what, and when of the work sheet.
Income Statement section
The ________ of the work sheet includes only the temporary general ledger accounts.
Trial Balance section
The ___________ of the work sheet includes all the general ledger accounts.
net income
The amount left after expenses for the period have been subtracted from revenue for the period is _______.
capital
The amount of net income for the period is added to the total of the credit column of the Balance Sheet section because it increased the balance in the ______ account.
trial balance
The first two columns of the work sheet are used to enter the ________.
Balance Sheet section
The permanent general ledger accounts are extended to the _______ of the work sheet.
extending
Transferring balances from the Trial Balance section is called ________ the balances.
net loss
When the Income Statement debit column total is greater than the Income Statement credit column total, a(n) _____ occurs.
extending
_______ is transferring balances from the Trail Balance section of the work sheet to either the Balance Sheet section or the Income Statement section
