True/False

T/F: 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. (p. 158)

False

T/F: A fiscal period must be 12 months in length. (p. 159)

False

T/F: Journals, ledgers, and work sheets are considered permanent records. (p. 159)

False

T/F: The heading on a work sheet contains the name of the business, the name of the report, and the date of the report. (p. 159)

True

T/F: Only accounts with a balance are listed on a trial balance. (p. 160)

False

T/F: The four questions asked when analyzing an adjustment are: Why? Where? When? and How? (p. 164)

False

T/F: The two accounts affected by the adjustment for supplies are Supplies and Supplies Expense. (p. 164)

True

T/F: The two accounts affected by the adjustment for insurance are Prepaid Insurance Expense and Insurance. (p. 165)

False

T/F: The balance in Prepaid Insurance after adjusting entries are recorded represents the amount of insurance premium still remaining. (p. 165)

True

T/F: Totaling and ruling the Adjustments columns of a work sheet are necessary to prove the equality of debits and credits. (p. 166)

True

T/F: The income statement and balance sheet are prepared from the Trial Balance columns on the work sheet. (p. 169)

False

T/F: Net income on a work sheet is calculated by subtracting the Income Statement Debit column total from the Income Statement Credit column total. (p. 171)

True

T/F: If errors are found on a work sheet, they must be erased and corrected before any further work is completed. (p. 173)

True

T/F: When two column totals are not in balance on the work sheet, the difference between the two totals is calculated and checked. (p. 173)

True

T/F: 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 a transposed number. (p. 173)

True

T/F: 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. (p. 174)

True

T/F: Most errors occur in doing arithmetic. (p. 174)

True

T/F: The best way to prevent errors is to use a calculator. (p. 174)

False

T/F: Adjusting entries must be posted to the general ledger accounts. (p.176)

True

T/F: The balance in Supplies Expense after adjusting entries are recorded represents the amount of supplies used during the fiscal period. (p. 176)

True