Accounting 1st Semester Review

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• Cash Statement

Under the accrual basis of accounting, revenues are reported in the accounting period when the:

• Cash is Received
• Service or Goods Have Been Delivered
• End of the Month Has Arrived
• Customer Pays

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Owner Equity
• Equity

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Debt
• Owner Equity

Liabilities often have the word __________ in their account title.

• Assets
• Payable
• Paid
• Equity

Accounting entries involve a minimum of how many accounts?

• One
• Two
• Three
• Four

The listing of all of the accounts available for use in a company's accounting system is known as the __________.

• Chart of Accounts
• Journal
• Ledger
• Credit Ledger

Under the accrual basis of accounting, expenses are reported in the accounting period when the

• Cash is Paid
• Expense Matches the Revenues or is Used up

Revenues minus expenses equals:

• Assets
• Liabilities
• Owner Equity
• Net Income