Page 2 - Objective (1)

Question 7

Q. The balance sheet reports the final balances of the permanent accounts at the end of the
fiscal period.
answer choices

1. True
2. False

Question 8

Q. The balance sheet is prepared before the statement of changes in owner's equity.
answer choices

1. True
2. False
Question 9

Q. The primary financial statements prepared for a sole proprietorship are the income statement
and the balance sheet.
answer choices

1. True
2. False
Question 10

Q. The information on the statement of changes in owner's equity is used in preparing the
income statement.
answer choices

1. True
2. False
Question 11

Q. The balance sheet reports financial information __________.

answer choices
1. at the end of the fiscal period.
2. at the beginning of the fiscal period.
3. on a specific date.
4. at the end of every month.

Question 12
Q. The __________ is completed as a support document for the balance sheet.

answer choices

1. Balance Sheet section of the work sheet
2. Income Statement section of the work sheet
3. Statement of changes in owner's equity
4. Work sheet