Accounting Technical Skills Assessment Practice Flashcard

Front

What is the main purpose of the accounting cycle?

Back

Provide financial information

Front

What does the accounting equation represent?

Back

Assets = Liabilities + Equity

Front

What type of account is "Accounts Payable"?

Back

Liability

Front

In the double-entry system, every transaction: Affects two or more accounts

Back

Affects two or more accounts

Front

If a company purchases equipment on credit, what accounts are affected?

Back

Equipment and Accounts Payable

Front

Which of the following increases equity? Expenses, Revenue, Drawings, Liabilities

Back

Revenue

Front

What is a journal entry?

Back

A record of a business transaction

Front

Which financial statement shows a company’s profitability over time? Options: Balance Sheet, Cash Flow Statement, Income Statement, Trial Balance

Back

Income Statement

Front

What is the purpose of adjusting entries?

Back

Match revenues and expenses

Front

Which report lists all accounts and their balances after adjusting entries?

Back

Trial Balance