5 Written Questions
5 Matching Questions
- Temporary accounts
- Post-closing trial balance
- Net loss
- Net income
- a The difference between total revenue and total expenses when total expenses are greater.
- b The difference between total revenue and total expenses when total revenue is greater.
- c A trial balance prepared after the closing entries are posted.
- d An amount owed by a business.
- e Accounts used to accumulate information until it is transferred to the owner's capital account.
5 Multiple Choice Questions
- The length of time of which a business summarizes and reports financial information.
- Transferring information from a journal entry to a ledger account.
- A financial statement showing the revenue and total expenses for a fiscal period.
- When revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
- A ledger that contains all accounts needed to prepare financial statements.
5 True/False Questions
Trial balance → A proof of the equality of debits and credits in a general ledger.
Opening an account → Accounts used to accumulate information from one fiscal period to the next.
Going concern concept → Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
Proprietorship → Transferring information from a journal entry to a ledger account.
Transaction → A business activity that changes assets, liabilities, or owner's equity.