FUNDAMENTALS OF ACCOUNTING 1 LONG QUIZ

It will decrease as result of the regular withdrawal (drawing) of the owner, or the net loss incurred.

• income statement

• trial balance

• cash flow statement

• equity

A 12-month period which does not end December 31.

• calendar year

• interim period

• fiscal year

• natural business year

These are the accounting reports prepared at the end of the accounting period.

• balance sheet

• income statement

• statement of financial performance

• financial statement

It is prepared at the end of the accounting period to update the books.

• columnar

• adjusting entries

• closing entries

• trial balance

It is the trial balance after the closing entries.

• closing trial balance

• opening trial balance

• post-closing trial balance

• preliminary trial balance

These are entries prepared in the general journal at the end of the accounting period to close all the nominal accounts preparatory to formally closing the books.

• posting to ledger

• adjusting entries

• closing entries

• income statement

It is the process of transferring the entries in the journal to the general ledger.

• posting

• journalizing

• closing

• opening

Cash received from borrowings is under Financing Activities.

• true

• false

• maybe

• none of the above

What is the Pro-forma Adjusting Entries of the Prepaid Rent?

• Dr: Rent Expense

  Cr. Prepaid Rent

• Dr. Asset

  Cr. Liabilities

• Dr. Expenses

  Cr. Liabilities

• Dr. Prepaid Rent

  Cr. Rent Expense

Which of the following is not considered an operating expense?

• Cash received from borrowings.

• Payment to Suppliers

• Cash received from Clients

• Payment to employees