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False
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. ON TEST
False
A fiscal period must be 12 months in length.
False
Journals, ledgers, and work sheets are considered permanent records
True
The heading on a worksheet contains the name of the business, the name of the report, and the date of the report.
False
Only accounts with a balance are listed on a trial balance. ON TEST
False
The four questions asked when analyzing an adjustment are: Why? Where? When? and How?
True
The two accounts affected by the adjustment for supplies are Supplies and Supplies Expense.
False
The two accounts affected by the adjustment for insurance are Prepaid Insurance Expense and Insurance
True
The balance in Prepaid Insurance after adjusting entries are recorded represents the amount of insurance premium still remaining.
True
Totaling and ruling the Adjustments columns of a worksheet are necessary to prove the equality of debits and credits.
False
The income statement and balance sheet are prepared from the Trial Balance columns on the worksheet.
True
Net income on a worksheet is calculated by subtracting the Income Statement Debit column total from the Income Statement Credit column total ON TEST
True
If errors are found on a worksheet, they must be erased and corrected before any further work is completed. ON TEST
True
When two column totals are not in balance on the worksheet, the difference between the two totals is calculated and checked.
True
If the difference between the totals of Debit and Credit columns on a worksheet can be evenly divided by 9, then the error is most likely a transposed number. ON TEST
True
If there are errors in the work sheet's Trial Balance columns, it might be because a general ledger account balance was recorded in the wrong Trial Balance column.
True
Most errors occur in doing arithmetic
False
The best way to prevent errors is to use a calculator
True
Adjusting entries must be posted to the general ledger accounts ON TEST(2)
True
The balance in Supplies Expense after adjusting entries are recorded represents the amount of supplies used during the fiscal period. ON TEST
many buisnesses false ;two financials false; net income blablabla
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