CIM2102 Principles of Accounting Midterm Exam

What is the process of recording, classifying, and summarizing economic events through the preparation of financial statements?

• Accounting

• Concluding

• Reporting

What are reports prepared by companies on the financial status of their business?

• Bank Statements

• Financial Statements

• Mission Statements

Which principle is practices and methods used for presentation on the financial statement should be the same year to year and process to process?

• Conservatism

• Entity Concept

• Consistency

What is the basic accounting equation?

• A = L + OE

• A + L = OE

• A + OE = L

What is this?

• General journal

• General ledger

This listing of accounts , usually the Assets are the 100s, the Liabilities the 200s, the Owner’s Equity the 300s, the Revenues the 400s, and the Expenses the 500s, is normally called as?

• Lists of Accounts Names

• Chart of Accounts

In the journal entry, ____were used to increase the Assets (land, building, and truck), while ____were used to decrease Asset (cash), but to increase the Liability(mortgage payable).

• Debits, Credits

• Credits, Debits

Long-Term Assets like the building and truck have a finite life. Their original or historical cost is therefore spread over their useful lives. This process is called as _____.

• subtraction

• depreciation

In general, accounting records are closed at the end of the year. After the closing journal entries have been made and posted, all the Income Statement accounts also called temporary accounts begin the new year with______.

• a zero balance

• debit-credit balance

Each Revenue and Expense account is closed by EXCEPT

• determining the balance of the account

• placing this amount the account balance on the opposite side of the account

• deducting this amount the account balance on the same side of the account