Recording adjustments on a work sheet brings the general ledger accounts up to date.

The amount recorded in Income Summary is extended to the Balance Sheet Debit or Credit column.

A work sheet should be prepared only once a year.

The difference between an asset's account balance and its related contra account is called book value.

Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset divided by the years of estimated useful life.

Generally accepted accounting principles require that corporations charge 1% of credit sales as an adjustment for uncollectible accounts.

Purchases are recorded in the merchandise inventory account.

All accounts are listed on the work sheet regardless of whether there is a balance or not.

Estimated income tax must be paid in quarterly installments.

A net income amount is extended to the Balance Sheet Credit column.

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