Accounting- Chapter 6 True/False Exam UPDATED QUESTIONS AND CORRECT ANSWERS

Accounting- Chapter 6 True/False Exam
UPDATED QUESTIONS AND CORRECT
ANSWERS
True or False: The accounting concept Consistent Reporting is being applied when a delivery business
reports revenue for the number of deliveries made one year and the amount of revenue received for
the deliveries made the next year. (p. 158) - CORRECT ANSWER False



True or False: A fiscal period must be 12 months in length. (p. 159) - CORRECT
ANSWER False



True or False: Journals, ledgers, and work sheets are considered permanent records. (p. 159) -
CORRECT ANSWER False



True or False: The heading on a work sheet contains the name of the business, the name of the report,
and the date of the report. (p. 159) - CORRECT ANSWER True



True or False: Only accounts with a balance are listed on a trial balance. (p. 160) - CORRECT
ANSWER False



True or False: The four questions asked when analyzing an adjustment are: Why? Where? When? and
How? (p. 164) - CORRECT ANSWER False



True or False: The two accounts affected by the adjustment for supplies are Supplies and Supplies
Expense. (p. 164) - CORRECT ANSWER True



True or False: The two accounts affected by the adjustment for insurance are Prepaid Insurance
Expense and Insurance. (p. 165) - CORRECT ANSWER False



True or False: The balance in Prepaid Insurance after adjusting entries are recorded represents the
amount of insurance premium still remaining. (p. 165) - CORRECT ANSWER True