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