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basic accounting help: true and false questions. please help.?

answer as many as you can please, true or false.. and thanks for all the help! 1. work sheets for service and merchandising businesses are very different. 2. a trial balance is prepared to prove that all journal entries have been posted to the correct general ledger accounts. 3. all accounts are listed on the work sheeet regardless of whether there is a balance or not. 4. the value of the insurance coverage used is recorded as a debit to insurance expense. 5. the amount of supplies not used during a fiscal period represents an expense. 6. there will be a net loss if the income statement debit column total is larger than the income statement credit column total. 7. a net income amount is extended to the balance sheet debit column. 8. in the preparation of financial statements, accounting principles are applied differently from on fiscal period to the next. 9. beginning merchandise inventory less purchases made during the fiscal period plus ending inventory equals cost of merchandise sold. 10. if a company has determined that the acceptable component percentage for cost of merchandise sold is not more than 51.1%, the current year's actual component percentage of 48.9% is unacceptable. 11. revenue less cost of merchandise sold equals net income. 12. when a business's expenses are less than the gross profit on sales, the difference is known as net loss. 13. data needed to prepare the liabilities section of a balance sheet are obtained from a work sheet's balance sheet debit column. 14. information needed for journalizing adjusting entries is taken from the income statement and balance sheet columns of a work sheet. 15. at the end of a fiscal period, the temporary accounts are closed to prepare the general ledger for the next fiscal period. 16. the entry to close income summary transfers the amount of net income or net loss to the partners capital account. 17. a prepaid insurance adjustment includes a debiting the expense accounts and crediting income summary. 18. expense accounts are closed by debiting the expense accounts and crediting income summary. 19. a purchase journal is used for cash purchases only. 20. trade discounts normally are recorded in the purchases discount account. 21. if the actual petty cash on hand is $53.00 but the records show that $55.00 should be on hand, the petty cash fund is said to be over. 22. the terms of sale 1/10, n/30 mean that the customer may deduct 1% of the invoice amount if payment is made within 30 days of the invoice date. 23. each amount in a sales journal's account receivable debit column is pasted to an accounts receivable ledger account. 24. regardless of when merchandise is sold, revenue should be recorded when cash is received. 25. a sales invoice is the source document for journalizing sales on account transaction. 26. when credit terms of 2/10, n/30 are offered, it means a cash discount of 2% is offered if the invoice is paid within 30 days. 27. the account allowance for uncollectible accounts is increased by a debit. 28. accounts receivable that cannot be collected are called uncollectible accounts. 29. using the percentage of total sales on account to estimate uncollectible accounts expense assumes that portion of every dale on account dollar will become uncollectible. 30. canceling the balance of a customer account because the customer does not pay is called writing off an account. 31. when a previously written-off account is collected, accounts receivable is debited and credited for the amount collected. 32. assets expected to be exchanged for cash or consumed within a year are known as plant assets. 33. plant assets decrease in value because of use and the passage of time 34. the original cost of a plant asset includes only the amount paid the vendor the plant asset. 35. estimated total depreciation expense is calculated as original cost less estimated salvage value. 36. loss on plant assets is revenue that results when a plant asset is sold for more than book value. 37. personal property includes buildings but not land. 38. a perpetual inventory system provides day-to-day information about the quality of merchandise on ahdn. 39. when a business frequently orders small quantities of an item, the price paid is often more per unit than when merchandise is ordered in large quantities. 40. the cost of merchandise inventory is reported on both the income statement and the balance sheet. 41. businesses that need an ending inventory amount for preparing monthly income statements should take a physical inventory to obtain the amount for each month. 42. first in, first out is a method used to determine the quantity of each type of merchandise on hand. 43. the journal entry for paying a note payable includes a debit to accounts payable to remove the balance owed. 44. when a business receives payment for a note receivable, accounts receivable is credited. 45. in interest calculations, time can be expressed in who

Public Comments

1. Sorry - that's too many in one go.