Accounting Five major accounts

The accounting cycle is a series of recurring accounting steps or processes within one accounting period.

• True

• False

The main components or elements of the income statement are _____, expenses, gains, and losses.

lists all amounts owed from previous invoices

• chart of accounts

• bank statement

• vendor statement

• general journal

report which lists all amounts which are owed by a business; further ensures which accounts payable entries are properly recorded

• bank statement

• general ledger

• schedule of accounts payable

• general journal

• Assets

• Liabilities

• Owner's Equity

Liabilities are

• Equal to the sum of assets plus owner’s equity

• Created when stockholder contributed cash to company by stock exchanges

• Obligation of the entity to outsiders

These are the resources owned by a business that is results from past events and has future economic benefits called?

• Equity

• Income

• Drawings

• Assets

Consist of various assets such as machineries, transportation, office, computer, furniture and fixtures.

• Land

• Equipment

• Building

• Supplies

• Assets

• Liabilities

• Owner's Equity

Receivables supported by oral or informal promises to pay.

• Notes Receivables

• Oral Receivables

• Account Receivables

• Cash