Chapter 6- True And False Flashcards
The accounting concept Consistent Reporting is being applied when a delivery business reports revenue for the number of deliveries made one year and the amount of revenue received for the deliveries made the next year.
false
An account period is also know as a fiscal period.
true
Journals, ledgers, and work sheets are considered permanent records.
false
All general ledger account titles are listen on a trial balance in the same order as listed on the chart of accounts.
true
The four questions asked when analyzing an adjustment are: why? Where? When? And how?
false
The two accounts affected by the adjustment for supplies are supplies and supplies expense.
true
The two accounts affected by adjusting insurance are prepaid insurance expense and insurance.
false
Totaling and ruling the adjustments columns of a work sheet are necessary to prove the equality of debits and credits.
true
Two financial statements are prepared from the information on the work sheet.
true
Net income on a work sheet is calculated by subtracting the Income Statement Credit column total from the Income Statement Debit column total.
false
If errors are found on a work sheet, they must be erased and corrected before any further work is completed.
true
When two column totals are not in balance on the work sheet, the difference between the two totals is calculated and checked.
true
if the difference between the totals of debit and credit columns on a work sheet can be evenly divided by 9, then the error is most likely in addition
false
if there are errors in the work sheet’s trial balance columns, it might be because not all general ledger account balances were copied in the trial balance column correctly
true
errors in general ledger accounts should never be erased
true
