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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

The General Ledger and Financial Statements

True/False Questions


1	The ledger must be in balance before financial statements are prepared.
		A)	True
		B)	False


2	Accountants use a worksheet as a means of organizing their figures quickly.
		A)	True
		B)	False


3	Asset account balances from the trial balance are normally transferred to the Income Statement Debit column of the worksheet.
		A)	True
		B)	False


4	Liability account balances from the trial balance are normally transferred to the Balance Sheet Credit column of the worksheet.
		A)	True
		B)	False


5	The balances of the expense accounts are normally transferred to the Income Statement Debit column of the worksheet.
		A)	True
		B)	False


6	When the Balance Sheet columns of the worksheet are first added, the total of the Debit column should equal the total of the Credit column.
		A)	True
		B)	False


7	After the net income (or net loss) is computed in the Income Statement section of the worksheet, this amount is transferred to the Balance Sheet section of the worksheet.
		A)	True
		B)	False


8	On a worksheet, the difference between the Debit and Credit column totals in the Income Statement section must equal the difference between the Debit and Credit column totals in the Balance Sheet section.
		A)	True
		B)	False


9	The Income Statement columns and Balance Sheet columns provide the figures for preparing the financial statements.
		A)	True
		B)	False

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