Unit 2 review basketball

A balance sheet reports financial information over a specific period of time. FALSE

Reporting in the same fiscal period the revenue earned and the expenses incurred to earn that revenue is an application of the accounting concept matching expenses with revenue. True

All financial statements have four-line headings. FALSE

The formula for calculating net income is total revenue minus total expenses equals’ net income. TRUE

The capital to be reported on a balance sheet is calculated as: the capital account balance plus net income equals capital. false

The adequate disclosure accounting concept is applied when financial statements contain all information necessary to understand a business's financial condition. true

An income statement reports information over a period of time, indicating the financial progress of a business in earning a net income or a net loss. True

The income statement for a service business has five sections: heading, revenue, expenses, net income or loss, and capital. false

Only revenue accounts and expense accounts are used in preparing the income statement. true

The net income on an income statement is verified by checking the balance sheet. false

Single lines ruled across an amount column of an income statement indicate that amounts are to be added. true

An amount written in parentheses on a financial statement indicates an estimate. false

A balance sheet reports financial information on a specific date and includes the assets, liabilities, and owner's equity. true

A balance sheet reports information about the elements of the accounting equation. true

Double lines are ruled across the balance sheet columns to show that the column totals have been verified as correct. true

Total asset line is determined after the equities section is prepared. true

When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue. false

The owner's capital amount reported on a balance sheet is calculated as: capital account balance plus drawing account balance less net income. false

An income statement reports a business's financial ____. condition over a specific period of time c. condition on a specific date b. progress over a specific period of time d. progress on a specific date B

A balance sheet reports a business's financial ____. condition over a specific period of time c. condition on a specific date b. progress over a specific period of time d. progress on a specific date c

The sections of an income statement are ____. assets, liabilities, and owner's equity b. heading, revenue, expenses, and net income or net loss c. assets, liabilities, and net income or net loss d. assets, revenue, and net income or net loss b

The date on a monthly income statement prepared on July 31 is written as ____. For Month Ended July 31, 20-- c. 20--, July 31 b. July 31, 20-- d. none of the above A

When preparing a balance sheet, the amount of owner's capital is obtained from ____. the CFO b. the income statement c. the statement owners equity d. none of the above c

Lightening round 30 seconds….