CHAPTER 5 General Accounting and End-of-Period Procedures 307 END-OF-CHAPTER QUESTIONS TRUE/FALSE ANSWER THE FOLLOWING QUESTIONS IN THE SPACE PROVIDED BEFORE THE QUESTION NUMBER. 1. You record the amount of supplies on hand as the amount of the adjusting entry for supplies used. 2. Once a report has been customized, it may be accessed in Accountant Reports. 3. Additional investments made by an owner may be cash or non-cash items. 4. An owner's withdrawal is recorded as a payroll expense. 5. Accrual-basis accounting matches the income from the period and the expenses for the period in order to determine the net income or net loss for the period. 6. Depreciation is recorded for the decrease in value of a fixed asset. 7. A Statement of Cash Flows organizes information regarding cash activities and projects the amount of cash at the end of a period. 8. A Balance Sheet is prepared to prove the equality of debits and credits. 9. You cannot record an automatic loan payment when you reconcile a bank statement. 10. A Reconciliation Report prints the last two bank reconciliation reports automatically MULTIPLE CHOICE WRITE THE LETTER OF THE CORRECT ANSWER IN THE SPACE PROVIDED BEFORE THE QUESTION NUMBER. The report that proves Assets = Liabilities + Owner's Equity is the- A. Trial Balance B. Income Statement C. Profit & Loss Report D. Balance Sheet 1. If the adjusting entry to transfer Net Income and Retained Earnings into the owner's capital account is made prior to the end of the year, the Balance Sheet shows A. Retained Earnings B. Net Income C. Both Net Income and Retained Earnings D. None of the above because the Net Income and Retained Earnings have been 2. transferred into capital