Chapter 6 T/F

Adjusting entries must be posted to the general ledger accounts.

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.

True

If the Trial Balance columns are not equal and the difference is $50.00, the error most likely is a $25.00 amount written in the wrong column.

True

Journals, ledgers, and worksheets are considered permanent records.

False

Many businesses choose a one-year fiscal period that ends during a period of high business activity.

False

Only accounts with a balance are listed in the Trial Balance columns of a worksheet.

False

If an amount is written in an incorrect column of a worksheet, the error should be erased and the amount should be written in the correct column.

True

Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.

True

Net income on a worksheet is calculated by subtracting the Income Statement Debit column total from the Income Statement Credit column total.

True

The amount of the supplies used during a fiscal period is an expense.

True

The two accounts affected by the adjustment for supplies are Supplies and Supplies Expense.

True

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 of the Supplies account plus the value of the supplies on hand equals the up-to-date balance of the Supplies account.

False

When the Income Statement Debit column total is greater than the Income Statement Credit column total on a worksheet, the business has a net income.

False

Two financial statements are prepared from the information on the worksheet.

True