Accounting - Chapter 8 Review

Front

Which accounting concept states that the same currency must be used throughout all accounting records?

Back

Unit of Measurement

Front

Which accounting concept states that you must keep business and personal records separate?

Back

Business Entity

Front

Which accounting concept is applied when a source document is prepared for each transaction?

Back

Objective Evidence

Front

Which accounting concept states that revenue earned and expenses incurred to earn that revenue must be reported in the same fiscal period?

Back

Matching Expenses with Revenue

Front

Which accounting concept is applied when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?

Back

Accounting Period Cycle

Front

Accounts used to accumulate information until it is transferred to the owner's capital account at the end of a fiscal period are called _____ accounts.

Back

temporary

Front

The first step in the closing entry process is to do what? Options: close drawing, close expenses, close sales, close capital

Back

close sales

Front

Temporary accounts must have a balance of zero before beginning the next fiscal period.

Back

True

Front

The fourth and final step in the closing entry process is to close what? Options: the drawing account, the capital account, the income summary account, all expense accounts

Back

the drawing account

Front

The amount used to close the Income Summary account will actually be the

Back

net income or net loss