Accounting Chapter 6 Questions and Graded Answers.
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. - True
T/F: Only accounts with a balance are listed in the Trial Balance columns of a work sheet. -
False
T/F: Journals, ledgers, and work sheets are considered permanent records. - False
T/F: The two accounts affected by the adjustment for supplies are Supplies and Supplies
Expense. - True
What is accrual basis of accounting? - Reporting income when it is earned and expenses
when they are incurred.
T/F: 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
T/F: Making adjustments to general ledger accounts is an application of the Matching Expenses
with Revenue accounting concept. - True
T/F: Adjusting entries must be posted to the general ledger accounts. - True
A fiscal period consisting of 12 consecutive months is
___________________________________. - Fiscal Year
What is cash basis of accounting? - Reporting income when the cash is received and
expenses when the cash is paid.
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. - True
T/F: Only accounts with a balance are listed in the Trial Balance columns of a work sheet. -
False
T/F: Journals, ledgers, and work sheets are considered permanent records. - False
T/F: The two accounts affected by the adjustment for supplies are Supplies and Supplies
Expense. - True
What is accrual basis of accounting? - Reporting income when it is earned and expenses
when they are incurred.
T/F: 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
T/F: Making adjustments to general ledger accounts is an application of the Matching Expenses
with Revenue accounting concept. - True
T/F: Adjusting entries must be posted to the general ledger accounts. - True
A fiscal period consisting of 12 consecutive months is
___________________________________. - Fiscal Year
What is cash basis of accounting? - Reporting income when the cash is received and
expenses when the cash is paid.
