Chapter 7- Analyzing Statement of Owner’s Equity and Balance Sheet Procedures

The date on a monthly statement of owner's equity prepared on May 31 is written as (A) For Month Ended May 31, 20-- (B) May 31, 20-- (C) 20--, May 31 (D) none of the above

A

Information needed to prepare a statement of owner's equity is obtained from a work sheet's Account Title column and (A) Income Statement columns (B) Balance Sheet columns (C) Adjustment columns (D) none of the above

B

The amount of capital reported on a statement of owner's equity is calculated as (A) Capital Account Balance + Net Income – Drawing Account Balance (B) Capital Account Balance – Net Income – Drawing Account Balance (C) Capital Account Balance + Net Income + Drawing Account Balance (D) Capital Account Balance – Net Income + Drawing Account Balance

A

The date on a monthly balance sheet prepared on July 31 is written as (A) For Month Ended July 31, 20-- (B) July 31, 20-- (C) 20--, July 31 (D) none of the above

B

Information needed to prepare a balance sheet's Assets section is obtained from a work sheet's Account Title column and (A) Income Statement Debit column (B) Income Statement Credit column (C) Balance Sheet Debit column (D) Balance Sheet Credit column

C

Information needed to prepare a balance sheet's Liabilities section is obtained from a work sheet's Account Title column and (A) Income Statement Debit column (B) Income Statement Credit column (C) Balance Sheet Debit column (D) Balance Sheet Credit column

D