5 Written questions
5 Matching questions
- General ledger
- Net loss
- Owner's equity
- Objective evidence concept
- a A ledger that contains all accounts needed to prepare financial statements.
- b A source document is prepared for each transaction.
- c The difference between total revenue and total expenses when total expenses are greater.
- d The amount remaining after the value of all liabilities is subtracted from the value of all assets.
- e A business activity that changes assets, liabilities, or owner's equity.
5 Multiple choice questions
- A proof of the equality of debits and credits in a general ledger.
- A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
- The difference between total revenue and total expenses when total revenue is greater.
- When revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
- Accounts used to accumulate information until it is transferred to the owner's capital account.
5 True/False questions
Proprietorship → A business owned by one person.
Opening an account → Writing the account title and number on the heading of an account.
Liability → An amount owed by a business.
Ledger → A group of accounts.
Permanent accounts → Accounts used to accumulate information from one fiscal period to the next.