FABM 2 final exam

The accounting equation is:

• Asset - Liabilities = Owner's Equity

• Assets = Liabilities + Owner's Equity

• Liabilities + Assets = Owner's Equity

• Liabilities = Assets + Owner's Equity

It is an item that is listed either as an asset, liabilities, or capital.

• Ledger

• Journal

• Debit and credit

• Account

It is the process of recording the business transaction in a chronological order in the book of original entry through journal entries.

• Journalizing

• Posting

• Accounting cycle

• Columnar

It refers to an accounting process or steps of a series of activities of the business during the fiscal period.

• Journalizing

• Posting

• Accounting cycle

• Columnar

The lefthand side of the account is called___________.

• Increase

• Debit

• Credit

• Decrease

The righthand side of the account is called ______________.

• Increase

• Debit

• Credit

• Decrease

It is daily collection of business transactions entered into by an entity.

• General journal

• Special journal

• Journalizing

• General ledger

It presents transactions in relation to the accounts they affect.

• General journal

• Special journal

• Journalizing

• General ledger

Paid the monthly water bill for P445.

• Increase in assets = increase in capital

• Increase in assets = increase in liabilities

• Decrease in assets = decrease of capital

• None of the above

These are the steps or process of the accounting cycle, except

• Recording or journalizing

• Preparing the trial balance

• Closing entries

• None of the above