5 Written questions
5 Matching questions
- Net loss
- Owner's equity
- Trial balance
- Fiscal period
- Objective evidence concept
- a A source document is prepared for each transaction.
- b The difference between total revenue and total expenses when total expenses are greater.
- c The length of time of which a business summarizes and reports financial information.
- d A proof of the equality of debits and credits in a general ledger.
- e The amount remaining after the value of all liabilities is subtracted from the value of all assets.
5 Multiple choice questions
- Accounts used to accumulate information until it is transferred to the owner's capital account.
- When revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
- A trial balance prepared after the closing entries are posted.
- Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
- An amount owed by a business.
5 True/False questions
Net income → The difference between total revenue and total expenses when total revenue is greater.
Transaction → A business activity that changes assets, liabilities, or owner's equity.
Proprietorship → A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
Income statement → A financial statement showing the revenue and total expenses for a fiscal period.
Ledger → A group of accounts.