ACCOUNTING FINAL EXAM REVIEW

Front

A financial ratio is a comparison between two components on financial information.

Back

True

Front

Cash is the most liquid asset of a business.

Back

True

Front

After each transaction, the accounting equation must remain in balance.

Back

True

Front

The accounting equation is most often stated as: Assets + Liabilities = Owner's Equity

Back

False

Front

Revenue and expense accounts must be closed out because their balances apply to only one fiscal period.

Back

True

Front

When 2 asset accounts are changed in a transaction, there must be an increase and a decrease.

Back

True

Front

A list of accounts used by a business is a chart of accounts.

Back

True

Front

An account device used to analyze transactions is a T account.

Back

True

Front

The right side of a T account is the 

Back

credit side

Front

Every journal entry requires a posting to at least two accounts.

Back

True