Study Name

Identifying Accounting Terms

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8 Pts.
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Score

Guide Analyzing Accounting Practices Related to a Work Sheet

Analyzing the Preparation of a Trial Balance on a Work Sheet
17
16
Pts.
Pts.

6 Analyzing Adjustments and Extending Account Balances on a Work Sheet

Total
16
57
Pts.
Pts.

Part One-Identifying Accounting Terms

Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.

Column I Column II Answers

A. adjustments 1. The length of time for which a business summarizes and reports 1. C
financial information. (p. 152)
B. balance sheet 2. A columnar accounting form used to summarize the general ledger 2. H
information needed to prepare financial statements. (p. 153)
C. fiscal period 3. A proof of equality of debits and credits in a general ledger. 3.
G
(p. 154)
D. income statement 4. Changes recorded on a work sheet to update general ledger 4. A
accounts at the end of a fiscal period. (p. 157)
E. net income 5. A financial statement that reports assets, liabilities, and owner's 5. B
equity on a specific date. (p. 162)
F. net loss 6. A financial statement showing the revenue and expenses for a fiscal 6. D
period. (p. 163)
G. trial balance 7. The difference between total revenue and total expenses when total 7. E
revenue is greater. (p. 164)
H. work sheet 8. The difference between total revenue and total expenses when total 8. F
expenses are greater. (p. 165)

• COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING

Chapter 6 • 117
Part Two-Analyzing Accounting Practices Related
to a Work Sheet
Directions: Place a T for True or an F for False in the Answers column to
show whether each of the following statements is true or false.

Answers
1. The accounting concept Consistent Reporting is being applied when ·a delivery business 1. F
reports revenue for the number of deliveries made one year and the a,mount of revenue ---
received for the deliveries made the next y~ar. (p. 152)
2. An accounting period is also known as a fiscal p~riod. (p. 152) · : 2. T
"- '
3. Journals, ledgers, and work sheets are considered~ manent r~cords. (p. 153) 3. F
4. All general ledget account titles are listed on a trial balance in the same order as listed 4. t
on the chart of accotints. (p. 154)
5. The four questions asked when analyzing an adjustm~nt are: Why? Where? When? and
I

5. f
How?' (p. 158) ,. . · .. ' ·

6. The two accounts affected by t);le adjustme~tfor s{ipplies are Supplies ~d Supplies 6., t
Expense. (p. 158) · ·
.I
,, 1 !., jt

7. The two accounts affected,by the a'd justmentfor insurance are Prepaid Insurance 7. f
Expense and Insurance. (p. 159) . , , 'I
• t ' 'I •, ,i , ,, ' 1,!l J •/ I ' I

8. Totaling 'a nd rulin:g ,the Adjustments, columns of a work sheet1ar~ necessary to prove the 8. T
1
equality of debits and eredits.1(p. ~.60f '

-
, , '° •' ·,; ·
/ ,r1

T
' 1!\ ''

9. Two financial stateipents ar~ prep11re1' ftom the inform,ation on the work sheet. (p. 162) 9.
' I ' I I I

16y' s1:1btra9ting 'the Income.Stateritent Credit

10. Net income on a Work 'sh~.e t is ,c~k H-Jat~d 10. F
column total 'from ttw Incqme _~tateq;ient Debit colµmri total. (p. 164) · , , '
11. If errors are found on a \\:~rk sll~et, 1fh:ey\ n1:st ¥e eras.~d an~ .• ~orre~ted befq~e ,i3-ny 1

11. T
further work is cdmpleted. (p. 167) , . , · . . ·
I •' I '

12. When two column totals ~re n~t in bal~nce'·on the wotl<
( • I ''r
.sheet, the difference betw~en
I I ' . ' 12. T
the two totals is ·calcul~ted and checked/ (p. 167) : 1,· ', ' , ,, ,,',, 1 , , , , ,,'
!1 h ' ', '. 1 1 f_ 1 I • !, '

13. If the difference between the totals of Debit and .C:redit coh.tpms on a work sheet can be
1
13. F
,e venly divided by 9, then the error is most likely in adq.ition. (p.' 167) , ,
I / '' I I \, ' '.I 11•,,i; I '\

14. If there are errors 'i n the wdr~ stieet's Trial, Balance cqltµIms, ~t might be because not 1all 14. T
general ledger accoµnt balance~,w~r~ extended into the1Trial Balance coluµm correctly.
(p. 167) '\ 1 ,
1 11
' p' \ ' I I '

15. Errors in general ledger acco,u nts should never be'• erased,. (p. 169) 15. T
' ' ' ---
16. The best way to prevent errors is ,to work carefully; wh~n possible, use a calculator. 16. F
(p, 169) '
,, I j,I' ,l ---
I ,, ' Y ', · '.

17. Most errors occur in doing arithmetic. ', (p. 169) ' I I, 17. T
I ,,
", ---

118 • Working Papers CENTURY 21 ACCOUNTING, 8 TH EDITION

•
 Name _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Date _______ Class _ _ __ _ _

Part Three-Analyzing the Preparation of a Trial

Balance on a Work Sheet
Directions: For each account title listed below, decide .whether the account
balance is recorded in the Trial Balance Debit or Trial Balance Credit column.
Place a check mark in the proper Answers column iden,tifying your choice.
Do not check either column if the account should not have a balance in the
Trial Balance columns. (p. 154)
Trial Balance
Debit Credit
1. Cash 1. X

2. Petty Cash 2. X

3. Accounts Receivable-Imagination Station 3. X

4. Supplies 4. X

5. Prepaid Insurance 5. X

6. Accounts Payable-Suburban Office Supplies 6. X

7. J. Nichols, Capital 7.
X

X
8. J. Nichols, Drawing 8.

9. Income Summary 9.

10. Sales 10.

X

11. Advertising Expense 11.

X

12. Insurance Expense 12.

13. Miscellaneous Expense 13.

X

X
14. Rent Expense 14.

15. Supplies Expense 15.

16. Utilities Expense

X

•
16.

COPYRIGHT © SOUTH-WESTERN (ENGAGE LEARNING Chapter 6 • 119

Part Four-Analyzing Adjustments and Extending
Account Balances on a Work Sheet
Directions: For each account listed below, determine in which work sheet
column(s) an amount typically will be written. Place a check mark in the
proper Answers column to show your answer.

Income Balance
Adjustments Statement Sheet
Debit Credit Debit Credit Debit Credit
(pp. 158-159) (p. 163) (p. 162)
1. Cash
X

X
2. Petty Cash

3. Accounts Receivable--
X
Imagination Station
X X
4. Supplies

X X
5. Prepaid Insurance

X
6. Accounts Payable--
Suburban Office Supplies
X
7. J. Nichols, Capital
X
8. J. Nichols, Drawing

9. Income Summary

X
10. Sales

X X
11. Advertising Expense

12. Insurance Expense

X

X
13. Miscellaneous Expense

14. Rent Expense

X

X X
15. Supplies Expense

X
16. Utilities Expense

120 • Working Papers CENTURY 21 ACCOUNTING, 8TH EDITION

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