| A | B |
|---|
| The statement of changes in owner's equity shows the changes in the Cash in Bank account from the beginning of the fiscal period through the end of the period | False |
| The balance sheet represents the basic accounting equation. | True |
| The balance sheet is prepared from the information in the Balance Sheet section of the work sheet and from the statement of changes in owner's equity. | True |
| The statement of changes in owner's equity is completed as a supporting document for the income statement. | False |
| The primary financial statements prepared for a sole proprietorship are the income statement and the statement of changes in owner's equity. | False |
| The statement of changes in owner's equity is prepared before the balance sheet. | True |
| A net loss and withdrawals both cause an increase in the capital account. | False |
| The wording of the date line in the heading on the income statement is important. | True |
| The sections listed on the income statement are the heading, the revenue for the period, the capital for the period, and the net income or loss for the period. | False |
| The balance sheet contains only the permanent general ledger accounts. | True |
