5 Written Questions
5 Matching Questions
- Trial balance
- Post-closing trial balance
- Permanent accounts
- General ledger
- a Accounts used to accumulate information from one fiscal period to the next.
- b An amount owed by a business.
- c A ledger that contains all accounts needed to prepare financial statements.
- d A proof of the equality of debits and credits in a general ledger.
- e A trial balance prepared after the closing entries are posted.
5 Multiple Choice Questions
- Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
- 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.
- A group of accounts.
- A business activity that changes assets, liabilities, or owner's equity.
5 True/False Questions
Opening an account → Accounts used to accumulate information from one fiscal period to the next.
Objective evidence concept → Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
Owner's equity → 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.
Temporary accounts → Accounts used to accumulate information until it is transferred to the owner's capital account.