10. T/F The two kinds of equities reported on the income statement are liabilities and owner’s equity.
11. T/F The balance sheet reports information about the elements in the accounting equation.
12. T/F The owners drawing account is closed to the owners capital account.
13. T/F A balance sheet is a financial statement that reports assers, liabilities, and owners equity on a specific date.
14. T/F The income summary account is a temporary account that does not have a normal balance
15. T/F The temporary accounts are reduced to zero at the end of each fiscal period.
16. T/F Temporary accounts with zero balances are listed on the post-closing trial balance.
17. T/F All balances sheet accounts are closed to the income summary account.
18. T/F The information needed to prepare a balance sheet is obtained from a work sheet’s Account Title column and the Balance Sheet columns.
19. T/F Reporting revenue earned and the expenses incurred to earn that revenue in the same fiscal period is an application of the accounting concept” Matching Expenses with Revenue”
20. T/F Expense accounts are closed by posting a credit to each expense account and debiting the income summary for the total of all expense account balances