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Accounting I - Chapter 6 Test

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 
A columnar form used to summarize general ledger information needed to prepare financial statements is ____.
a.
a balance sheet
c.
a work sheet
b.
a trial balance
d.
an income statement
 

 2. 
On a trial balance, ____.
a.
all general ledger account titles are listed
b.
only general ledger accounts that have balances are listed
c.
only accounts with debit balances are listed
d.
only accounts with credit balances are listed
 

 3. 
Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period are ____.
a.
found on a trial balance
b.
recorded in a work sheet's Income Statement columns
c.
reported on financial statements
d.
adjustments
 

 4. 
On a work sheet, the balance of Cash is extended to the ____.
a.
Balance Sheet Debit column
c.
Income Statement Debit column
b.
Balance Sheet Credit column
d.
Income Statement Credit column
 

 5. 
On a work sheet, the balance of the owner's capital account is extended to the ____.
a.
Balance Sheet Debit column
c.
Income Statement Debit column
b.
Balance Sheet Credit column
d.
Income Statement Credit column
 

 6. 
On a work sheet, the balance of the Sales account is extended to the ____.
a.
Balance Sheet Debit column
c.
Income Statement Debit column
b.
Balance Sheet Credit column
d.
Income Statement Credit column
 

 7. 
On a work sheet, the balance of an expense account is extended to the ____.
a.
Balance Sheet Debit column
c.
Income Statement Debit column
b.
Balance Sheet Credit column
d.
Income Statement Credit column
 

 8. 
When total revenue is greater than total expenses, the difference is a ____.
a.
net income
c.
debit balance
b.
net loss
d.
none of the above
 

 9. 
A net loss is entered in the work sheet's ____.
a.
Income Statement Debit and Balance Sheet Credit columns
b.
Income Statement Credit and Balance Sheet Debit columns
c.
Balance Sheet Debit and Trial Balance Credit columns
d.
Income Statement Debit and Trial Balance Credit columns
 

 10. 
If a pair of work sheet columns do not balance and the difference between the totals is an amount that appears elsewhere on the work sheet, the error is probably ____.
a.
an error in addition
b.
an amount that has been written in the wrong column
c.
an amount that has not been extended
d.
a slide
 

 11. 
If the Trial Balance columns are not equal and the difference is 1, the error often is ____.
a.
transposed numbers or a "slide"
b.
in writing an amount in the wrong column
c.
in posting
d.
in addition
 

 12. 
If the Trial Balance columns are not equal and the difference can by divided evenly by 9, the error most likely is ____.
a.
in transposed numbers or a "slide"
b.
subtraction
c.
addition
d.
in writing an amount in the wrong column
 

Matching
 
 
a.
adjustments
e.
net income
b.
balance sheet
f.
net loss
c.
fiscal period
g.
trial balance
d.
income statement
h.
work sheet
 

 13. 
The difference between total revenue and total expenses when total revenue is greater.
 

 14. 
A financial statement the reports assets, liabilities, and owner’s equity on a specific date.
 

 15. 
A proof the equality of debits and credits in the general ledger.
 

 16. 
The length of time for which a business summarizes and reports financial information.
 

 17. 
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
 

 18. 
Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.
 

 19. 
A financial statement showing the revenue and expenses for a fiscal period.
 

 20. 
The difference between total revenue and total expenses when total expenses is greater.
 



 
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