ACCOUNTING QUIZ 2

Journal entries used to prepare temporary accounts for the new period are adjusting entries.

• True
• False

All accounts in the general ledger/journal/worksheet are listed in a post-closing trial balance.

• True
• False

Permanent accounts include the following:

• Assets
• Liabilities
• Owner's Equity
• All of These

Information needed for closing entries is found in the  ________________ column on the worksheet. 

• Income Statement & Balance Sheet
• Trial Balance
• Adjustments
• None of These

The journal entry to close the revenue accounts is ________________.

• Debit Sales, Credit Income Summary
• Debit Income Summary, Credit Sales
• Debit Sales, Credit Capital
• None of These

Which of the following best describes the purpose of cost and management accounting?

• to provide information for planning, decision making and control

• to detect fraud

• to comply to regulatory authorities

• none of the choices

When producing written reports, the management accountant needs to determine the type of document required and established the user of the information.

• True

• False

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Owner Equity
• Equity

The accounting equation is

• Assets = Liabilities + Owner's Equity
• Assets = Liabilities - Owner's Equity
• Assets - Owner's Equity + Liability