5 Written questions
5 Matching questions
- Going concern concept
- Temporary accounts
- Work sheet
- a A business activity that changes assets, liabilities, or owner's equity.
- b A business owned by one person.
- c Accounts used to accumulate information until it is transferred to the owner's capital account.
- d A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
- e Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
5 Multiple choice questions
- An amount owed by a business.
- A proof of the equality of debits and credits in a general ledger.
- A source document is prepared for each transaction.
- The difference between total revenue and total expenses when total revenue is greater.
- A trial balance prepared after the closing entries are posted.
5 True/False questions
Owner's equity → The amount remaining after the value of all liabilities is subtracted from the value of all assets.
General ledger → A ledger that contains all accounts needed to prepare financial statements.
Fiscal period → The length of time of which a business summarizes and reports financial information.
Ledger → Transferring information from a journal entry to a ledger account.
Income statement → A financial statement showing the revenue and total expenses for a fiscal period.