18. The best way to prevent errors is to use a calculator.(p. 174) 19. Adjusting entries must be posted to the general ledger accounts. (p 176) Part Two-Analyzing Accounting Practices it Work Sheet and Adjusting Entries Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 1. The accounting concept Consistent Reporting is being applied when a delivery business reports revenue for the number of deliveries made one year and the amount of revenue received for the deliveries made the next year. (p 158) 2. A fiscal period must be 12 months in length. (p. 159) 3. Journals, ledgers, and work sheets are considered permanent records. (p. 159) 4. The heading on a work sheet contains the name of the business,the name of the report, __ and the date of the report. (p. 159) 5. Only accounts with a balance are listed on a trial balance.(p. 160) 6. The four questions asked when analyzing an adjustment are: Why? Where?When? and How? (p. 164) 7. The two accounts affected by the adjustment for supplies are Supplies and Supplies Expense. __ (p. 164) 8. The two accounts affected by the adjustment for insurance are Prepaid Insurance Expense __ and Insurance. (p. 165) 9. The balance in Prepaid Insurance after adjusting entries are recorded represents the amount __ of insurance premium still remaining. (p. 165) 10. Totaling and ruling the Adjustments columns of a work sheet are necessary to prove the equality of debits and credits. (p. 166) 10. 11. The income statement and balance sheet are prepared from the Trial Balance columns on the work sheet. (p 169) 12. Net income on a work sheet is calculated by subtracting the Income Statement Debit column total from the Income Statement Credit column total.(p. 171) 13. If errors are found on a work sheet, they must be erased and corrected before any further work is completed. (p 173) 14. When two column totals are not in balance on the work sheet, the difference between the two totals is calculated l and checked. (p. 173) 15. If the difference between the totals of Debit and Credit columns on a work sheet can be evenly divided by 9 then the error is most likely a transposed number. (p. 173) 16. If there are errors in the work sheet's Trial Balance columns , it might be because a general ledger account balance was recorded in the wrong Trial Balance column. (p 174) 17. Most errors occur in doing arithmetic. (P 174) 2. __ 3. __ 4. __ 5. __ __ __ 8. __ 9. 11 20. The balance in Supplies Expense after adjusting entries are recorded represents the amount Cood noried (n. 176)

## Step 1
The first statement is about the accounting concept of Consistent Reporting. This concept requires that companies use the same methods and procedures from period to period. The statement given is false because it does not adhere to this concept.

## Step 2
The second statement is about the length of a fiscal period. A fiscal period does not necessarily have to be 12 months in length. It can be any length of time as long as it is consistent.

## Step 3
The third statement is about the nature of journals, ledgers, and work sheets. These are not permanent records but are used in the accounting process.

## Step 4
The fourth statement is about the heading on a work sheet. The heading indeed contains the name of the business, the name of the report, and the date of the report.

## Step 5
The fifth statement is about the accounts listed on a trial balance. Only accounts with a balance are indeed listed on a trial balance.

## Step 6
The sixth statement is about the questions asked when analyzing an adjustment. The four questions asked are indeed: Why? Where? When? and How?

## Step 7
The seventh statement is about the accounts affected by the adjustment for supplies. The two accounts affected are indeed Supplies and Supplies Expense.

## Step 8
The eighth statement is about the accounts affected by the adjustment for insurance. The two accounts affected are indeed Prepaid Insurance Expense and Insurance.

## Step 9
The ninth statement is about the balance in Prepaid Insurance after adjusting entries. The balance indeed represents the amount of insurance premium still remaining.

## Step 10
The tenth statement is about the necessity of totaling and ruling the Adjustments columns of a work sheet. This is indeed necessary to prove the equality of debits and credits.

## Step 11
The eleventh statement is about the preparation of the income statement and balance sheet from the Trial Balance columns on the work sheet. This is indeed true.

## Step 12
The twelfth statement is about the calculation of net income on a work sheet. This is indeed true.

## Step 13
The thirteenth statement is about the correction of errors on a work sheet. This is indeed true.

## Step 14
The fourteenth statement is about the calculation of the difference between two column totals on a work sheet. This is indeed true.

## Step 15
The fifteenth statement is about the identification of errors on a work sheet. This is indeed true.

## Step 16
The sixteenth statement is about the errors in the work sheet's Trial Balance columns. This is indeed true.

## Step 17
The seventeenth statement is about the occurrence of errors in arithmetic. This is indeed true.

## Step 18
The eighteenth statement is about the balance in Supplies Expense after adjusting entries. This is indeed true.