Accounting I Semester 2 True and False Questions and answers

The work sheet is used to pull together all the information needed to prepare the financial statements and complete the end-of-period activities. - True A single rule under a column of amounts means that the amounts are to be added or subtracted - True the work sheet is prepared in pen because it is a formal document - False The work sheet has four sections: the heading, the Trial Balance section, the Income Statement section, and the Balance Sheet section - False The maximum period covered by the accounting cycle is one month - False A double rule across both amount columns of the Trial Balance section means that no more entries will be made - True If the debit column of the Income Statement section of the work sheet is greater than the credit column of the Income Statement section, there is a net income for the period - False Amounts from the Trial Balance section are first extended to the Balance Sheet section - True Account titles are listed on the work sheet in the same order as they appear in the general ledger - False A ledger account having a zero balance is not listed on the Trial Balance section of the work sheet - False A net loss decreases the balance in the owner's equity account - True