Financial Accounting Basic

Which financial statement displays the revenues and expenses of a company for a period of time?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Statement of Owners' Equity

What is the main purpose of financial accounting?

• Organize financial information

• Provide useful, financial information to outsiders

• Keep track of company expenses

• minimize company taxes

Which of these is not included as a separate item in the basic accounting equation?

• Assets

• Revenues

• Liabilities

• Owner's Equity

Which financial statement uses the expanded accounting equation?

• Income statement

• Balance sheet

• Cash flow statement

• Statement of owner's equity

The accrual basis of accounting records revenues when they are:

• Collected

• Earned

• Contracted

• Readily available for use

The account format that displays debits, credits, balances, and headings.

• General journal

• General ledger

• T-account

• Ledger account

Asset accounts have what type of balance?

• Debit

• Credit

• Contra

• All of the above

Which account is not a liability account?

• Accounts payable

• Accrued expenses

• Cash

• Notes payable

Which account increases equity?

• Expenses

• Withdrawals

• Liability

• Revenues

A contra asset account has what type of balance?

• Debit

• Credit

• Contra

• All of the above