Review of Accounting

The accounting cycle begins by recording _____________ in the form of journal entries.

• Business transactions

• Financial information

• Corporate minutes

• Business contracts

After a business transaction has occurred, journal entries are recorded in the

• ledger

• journal

• expense accounts

Once journal entries are recorded, they can be posted to:

• ledger

• income statement

• expenses account

Transactions that cannot be recorded in a special journal are recorded in a general journal.

• True
• False

Documents that summarize your businesses finances...

• financial reports

• journals

• ledgers

• income statements

A block of time covered by an accounting report

• fiscal year

• calendar year

• financial period

• accounting period

The amount that customers OWE your business is in this

• accounts payable

• accounts receivable

• credit accounts

• debit accounts

Examples of these could include buildings or equipment

• fixed assets

• investments

• current assets

• purchases

Cash or other items that can be converted into cast quickly

• fixed assets

• cash assets

• quick assets

• current assets

The debts of a business

• assets

• debts

• liabilities

• equity