Page 1 - Objective (1)

OBJECTIVE ASSESMENT

Question 1

The Trial Balance section of the work sheet provides the information used in preparing the
income statement
1. True
2. False

Question 2
Q. The changes in the Cash in Bank account are reported in the statement of changes in owner's
equity.

answer choices
1. True
2. False

Question 3
Q. The income statement represents the basic accounting equation.

answer choices
1. True
2. False

Question 4
Q. A net income will increase the owner's capital account.

answer choices

1. True
2. False

Question 5

Q. The heading is the same on all three financial statements.
answer choices

1. True
2. False

Question 6

Q. The statement of changes in owner's equity summarizes the effects on the capital account of
the various business transactions that occurred during the period.
answer choices

1. True
2. False