A balance sheet has 4 sections They are

A balance sheet has 4 sections. They are: Heading, Assets, Liabilities, and Owner’s Equity

The owner’s capital amount reported on a balance sheet is calculated as: For a Net Income: Beginning Capital + Net Income – Drawing For a Net Loss: Beginning Capital – Net Loss - Drawing

The formula for calculating net income is: Total Revenue Minus Total Expenses

The net income calculated for the income statement and the net income on the work sheet must be The Same

The _______accounting concept is applied when financial statements contain all information necessary to understand a business’s financial condition. Adequate Disclosure

On an Income Statement, double lines are ruled across both amount columns to indicate ___? The amount matches the Net Income/Net Loss on the Worksheet.

For a service business, the ______ reported on an Income Statement includes components for total expenses and net income. Revenue

The formula for calculating the total expenses component percentage is ____? Total Expenses Divided by Total Sales

The financial condition of a business refers to its financial ______. Strength

The owner’s equity section of a balance sheet may report different kinds of details about _____. Depending on the need of the business. Owner’s Equity

Component percentages on an Income Statement are calculated by ________? Divide the amount of each component by the total amount of sales.

A component percentage is the ______ relationship between one financial statement item and the total that includes that item. Percentage

An Income Statement reports information over a period of time, indicating the financial progress of a business in earning a ______ or ______. Net Income or Net Loss

The Matching Expense with Revenue accounting concept is applied when the _____ earned and the expenses incurred to earn that revenue are reported in the same fiscal period. Revenue

Information needed to prepare an Income Statement comes from the _______ columns of a worksheet. Income Statement

An amount written in parentheses on a financial statement indicates a/an ____. Net Loss

A _____ reports financial information for a specific date and includes the assets, liabilities, and owner’s equity. Balance Sheet

When a business has two different sources of revenue, do you complete one or two Income Statements? One

The date on a monthly Income Statement prepared on July 13 is written as ` For Month Ended July 13, 2011

The amount of Net Income calculated on the Income Statement should equal ______? The Net Income or Net Loss on the Worksheet.

Preparing financial statements at the end of each monthly fiscal period is an application of the accounting concept _____. Accounting Period Cycle

Information needed to prepare an Income Statement’s Revenue section is obtained from a worksheet’s Income Statement _____ column. Credit

A balance sheet reports a business’s financial condition on a _____ date. Specific

The formula for calculating the net income component percentage is ____. Net Income divided by Total Sales.

Information needed to prepare the balance sheets liabilities section is obtained from a worksheet’s Balance Sheet ______ column. Balance Sheet Credit Column

Assuring the financial statements contain all information necessary to understand a business’s financial condition is an application of the accounting concept ______. Adequate Disclosure

You will also have to prepare an Income Statement and Balance Sheet. A partial worksheet will be provided. Remember, capital on balance sheet is not taken form worksheet—YOU MUST CALCULATE THE AMOUNT.