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55) An income statement reports revenues earned minus expenses incurred over a period of time. Answer: TRUE Difficulty: 1 Easy Topic: Financial Statements Learning Objective: 02-P3 Prepare financial statements from business transactions. Bloom's: Understand AACSB/Accessibility: Communication / Keyboard Navigation AICPA: BB Industry; FN Decision Making 56) The detail of individual revenue and expense accounts is reported on the balance sheet. Answer: FALSE Difficulty: 2 Medium Topic: Financial Statements Learning Objective: 02-P3 Prepare financial statements from business transactions. Bloom's: Understand AACSB/Accessibility: Communication / Keyboard Navigation AICPA: BB Industry; FN Decision Making 57) The heading on every financial statement lists the three W's—Who (the name of the business); What (the name of the statement); and Where (the organization's address). Answer: FALSE Difficulty: 2 Medium Topic: Financial Statements Learning Objective: 02-P3 Prepare financial statements from business transactions. Bloom's: Understand AACSB/Accessibility: Communication / Keyboard Navigation AICPA: BB Industry; FN Reporting 58) If an owner's capital account had a $10,000 credit balance at the beginning of the period, and during the period, the owner invests an additional $5,000, the balance in the capital account listed on the trial balance will be equal to a debit balance of $5,000. Answer: FALSE Explanation: $10,000cr + $5,000cr = $15,000 credit balance Difficulty: 2 Medium Topic: Debits and Credits; Preparing a Trial Balance Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.; 02P2 Prepare and explain the use of a trial balance. Bloom's: Understand AACSB/Accessibility: Communication / Keyboard Navigation AICPA: BB Industry; FN Reporting

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Test Bank for Fundamental Accounting Principles 24th Edition Wild  

Fundamental Accounting Principles 24th Edition Wild Test Bank 2019 (9781259916960) (1259916960). Instant test bank download. Download from h...

Test Bank for Fundamental Accounting Principles 24th Edition Wild  

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