5 Written Questions
5 Matching Questions
- Net income
- Going concern concept
- Objective evidence concept
- Trial balance
- a Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
- b A group of accounts.
- c The difference between total revenue and total expenses when total revenue is greater.
- d A proof of the equality of debits and credits in a general ledger.
- e A source document is prepared for each transaction.
5 Multiple Choice Questions
- An amount owed by a business.
- A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
- A ledger that contains all accounts needed to prepare financial statements.
- Accounts used to accumulate information until it is transferred to the owner's capital account.
- A trial balance prepared after the closing entries are posted.
5 True/False Questions
Posting → A group of accounts.
Matching expenses with revenue concept → When revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
Opening an account → Writing the account title and number on the heading of an account.
Net loss → The difference between total revenue and total expenses when total expenses are greater.
Income statement → A financial statement showing the revenue and total expenses for a fiscal period.