Accounting ICert Questions

What accounts are closed at the end of a fiscal period?

• Temporary

• Liability

• Permanent

• Asset

What is the term for recording business transactions in chronological order?

• Posting

• Balancing Accounts

• Analyzing Transactions

• Journalizing

What shows a list of ALL accounts and their account numbers?

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What is the term for an amount 'OWED' by a business?

• Accounts Payable

• Accounts Receivable

• Withdrawals

• Capital

Beginning capital is $30,000, revenue/sales is $4,000, expenses are $1,500, and the owner's drawing/withdrawals account is $500. What is the updated capital account balance?

• $25,000

• $34,000

• $28,000

• $32,000

What is the next step in the accounting cycle after analyzing a source document?

• Preparing financial statements

• Posting to the ledger

• Journalizing transactions

• Preparing the trial balance

What is one way owner's equity is increased?

• Net income

• Owner's withdrawal of cash

• Owner's withdrawal of merchandise

• Net loss

When a business’s financial records are separate from its owner’s personal belongings, this is an application of which concept?

• Adequate Disclosure

• Business Entity

• Consistent Reporting

• Growing Concern

Depositing money in the company’s bank account daily minimizes which element of the fraud triangle?

• Rationalization

• Pressure

• Legality

• Opportunity

What is a check returned by the bank because there are not enough funds in the drawer's checking account?

• Dishonored/NSF check

• Voided check

• Canceled check

• Outstanding check