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