Ch 7
Which financial statement provides a snapshot in time of a business' networth/equity?
Balance Sheet
Accounts used to accumulate information from one fiscal period to the next are
permanent accounts.
What is the tallest mountain in the world
Mount Everest
The area of accounting the focuses on reporting financial information to EXTERNAL users is called:
Financial Accounting
Permanent accounts are used to accumulate information until it is transferred to the owner's capital account. T/F
False
What is the worlds largest ocean?
The net income calculated on the income statement should be the same as the net income calculated on the worksheet? T/F
True
The Income Summary account has a normal debit balance. T/F
False
What is the name of the deepest trench in the world?
Mariana Trench
What is the formula for the Total Expense Ratio?
Total expenses/ Total sales
After the closing entries are posted, the owner's capital account balance should be the same as shown
on the balance sheet for the fiscal period.
Which country has the longest coastline?
Canada
What is the formula for the Net Income Ratio?
Net Income/Total Sales
The journal entry to close Income Summary when there is a net income is
debit Income Summary, credit owner's capital.
To create a bubbling science volcano, you would mix together two ingredients:
Baking Soda and Vinegar
The current owner's capital amount reported on a statement of owner's equity is calculated as
capital account balance - drawing +/- net income/loss
The last step in the accounting cycle is to
prepare a post-closing trial balance.
What does NASA stand for?
National Aeronautics and Space Administration