FABM 2 - QUIZ (Accounting Cycle)

It is also known as book of original entries where business transactions are initially recorded.

A system where each transactions is recorded in two parts - debit and credit.

All the following accounts have normal debit balance except:

• assets

• expenses

• drawings

• revenue

is an analytical devise used to facilitate the gathering of data for adjustments, the preparation of financial statements and closing entries

It is the process of transferring data from the journal to the appropriate accounts in the ledger.

The collection of an account receivable is posted as

• a debit to the accounts receivable ledger account

• a credit to cash ledger account

• a credit to the accounts receivable ledger account

• public

The journal entry to record the revenue earned from rendering services on cash basis is posted to the ledger as

• credit to cash

• credit to service fees

• debit to cash

• debit to cash; credit too service fees

The amounts is the trial balance are derived directly from the balances in the

• source documents

• journal

• ledger

• accountant's mind

Which of the following is a correct sequence of the steps in the accounting cycle?

• journalizing, identifying and analyzing, trial balance, posting

• posting, journalizing, identifying and analyzing, trial balance

• identifying and analyzing, journalizing, posting, trial balance

• journalizing, identifying and analyzing, posting, trial balance

The main purpose of preparing a trial balance is

• to determine whether erroneous recording have occurred

• to determine whether the totals of debits and credits in the ledger accounts are equal

• to determine whether the debits and credits in the journal are equal

• to bring the accounts into justice