5 Written questions
5 Matching questions
- Opening an account
- Owner's equity
- Net income
- Permanent accounts
- a The difference between total revenue and total expenses when total revenue is greater.
- b A business owned by one person.
- c Writing the account title and number on the heading of an 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 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.
- When revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
- Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
5 True/False questions
General ledger → A ledger that contains all accounts needed to prepare financial statements.
Temporary accounts → Accounts used to accumulate information until it is transferred to the owner's capital account.
Liability → A group of accounts.
Post-closing trial balance → A proof of the equality of debits and credits in a general ledger.
Net loss → The difference between total revenue and total expenses when total revenue is greater.