Accounting Cycle Quiz

What is the accounting cycle?

• A process of recording, classification, and summarization of economic transactions

• A process of closing temporary accounts

• A process of preparing financial statements

• A process of analyzing and recording transactions

Which financial statements are prepared during the accounting cycle?

• Balance sheet, cash flow statement, and statement of changes in equity

• Income statement, balance sheet, and statement of changes in equity

• Income statement, balance sheet, and cash flow statement

• Income statement, balance sheet, cash flow statement, and statement of changes in equity

How often is the accounting cycle followed?

• Once every quarter

• Once every six months

• Once a year

• Once during each accounting period

What is the first step in the accounting cycle?

• Analyzing and recording transactions via journal entries

• Preparing financial statements

• Closing temporary accounts via closing entries

• Preparing adjusting entries at the end of the period

Where are journal entries posted?

• Ledger accounts

• Income summary account

• Trial balance

• Adjusted trial balance

What is prepared after posting journal entries to ledger accounts?

• Closing entries

• Adjusted trial balance

• Unadjusted trial balance

• Post-closing trial balance

When are adjusting entries prepared?

• At the beginning of the period

• After preparing financial statements

• At the end of the period

• Throughout the accounting period

What is the purpose of the adjusted trial balance?

• To post-closing trial balance

• To close temporary accounts

• To prepare financial statements

• To ensure that debits equal credits

Which accounts are closed during the closing entries step?

• Temporary accounts

• Permanent accounts

• Liability accounts

• Asset accounts

What is the last step in the accounting cycle?

• Analyzing and recording transactions via journal entries

• Preparing financial statements

• Preparing post-closing trial balance

• Preparing adjusting entries