Accounting Chapter 6: True or False

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

False 1

Adjusting entries must be posted to the general ledger accounts.

True 1

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

False 2

Two financial statements are prepared from the information on the work sheet.

True 2

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 3

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

False 3

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

True 6

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

True 4

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 4

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

True 5