Accounting

What are the stages of the accounting lifecycle?

• Collection stage, Recording stage, Summarizing stage, Interpreting and communication stage
• Data stage, Recording stage, Analyzing stage, Reporting stage
• Collection stage, Recording stage, Classification and analyzing stage, Summarizing stage
• Collection stage, Verification stage, Summarizing stage, Communication stage

What is the purpose of the trial balance in accounting?

• To show the financial position of a business at a specific point in time.
• To record the revenue and expenses of a business over a period of time.
• To calculate the profit or loss of a business for a specific period.
• To check the accuracy of the ledger accounts.

What is the concept of an accounting period?

• A one-week period in which financial activities or business activities take place.
• A one-month period in which financial activities or business activities take place.
• A one-day period in which financial activities or business activities take place.
• A one-year period in which financial activities or business activities take place.

What is the definition of 'Assets' in accounting?

• The amount generated in the course of carrying out business activities.
• The revenue derived from goods sold.
• The debts incurred by a business.
• The resources or materials owned by a business.

What is the importance of bookkeeping and accounting in a business?

• It is used for record keeping.
• It is used to determine the profit or loss for the period.
• It is used for trend analysis and forecast.
• It is used to determine the income and expenses for the period.

What is the purpose of a balance sheet in accounting?

• To show the financial position of a business at a specific point in time.
• To calculate the profit or loss of a business for a specific period.
• To forecast the future financial performance of a business.
• To record the revenue and expenses of a business over a period of time.

What is the purpose of the statement of cash flows in accounting?

• To show the financial position of a business at a specific point in time.
• To calculate the profit or loss of a business for a specific period.
• To report the cash inflows and outflows of a business over a period of time.
• To record the revenue and expenses of a business over a period of time.

What is the purpose of the income statement in accounting?

• To show the financial position of a business at a specific point in time.
• To forecast the future financial performance of a business.
• To record the revenue and expenses of a business over a period of time.
• To calculate the profit or loss of a business for a specific period.

What is the definition of 'Suppliers' in accounting?

• Individuals or organizations that purchase goods from a business on credit.
• Individuals or organizations that sell goods to a business in cash.
• The resources or materials owned by a business.
• The debts incurred by a business.

What is the definition of 'Profit' in accounting?

• The amount incurred in the course of carrying out business activities.
• The excess of expenses over income.
• The excess of income over expenses.
• The revenue derived from goods sold.