5 Written Questions

1. An amount owed by a business.
2. A group of accounts.
3. The difference between total revenue and total expenses when total expenses are greater.
4. A ledger that contains all accounts needed to prepare financial statements.
5. The length of time of which a business summarizes and reports financial information.

5 Matching Questions

1. Opening an account
2. Posting
3. Proprietorship
4. Trial balance
5. Net income

1. a A proof of the equality of debits and credits in a general ledger.
2. b A business owned by one person.
3. c The difference between total revenue and total expenses when total revenue is greater.
4. d Transferring information from a journal entry to a ledger account.
5. e Writing the account title and number on the heading of an account.

5 Multiple Choice Questions

1. Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
   1. Income statement
   2. Going concern concept
   3. Opening an account
   4. Objective evidence concept
2. Accounts used to accumulate information from one fiscal period to the next.
   1. Net income
   2. Permanent accounts
   3. Temporary accounts
   4. Opening an account
3. A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
   1. Ledger
   2. Net loss
   3. Work sheet
   4. Posting
4. A financial statement showing the revenue and total expenses for a fiscal period.
   1. Work sheet
   2. Income statement
   3. Net income
   4. Posting
5. A source document is prepared for each transaction.
   1. Going concern concept
   2. Net income
   3. Objective evidence concept
   4. Opening an account

5 True/False Questions

1. Matching expenses with revenue concept → When revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.

   True        False

2. Owner's equity → A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.

   True        False

3. Transaction → Transferring information from a journal entry to a ledger account.

   True        False

4. Post-closing trial balance → A trial balance prepared after the closing entries are posted.

   True        False

5. Temporary accounts → Accounts used to accumulate information from one fiscal period to the next.

   True        False