Accounting Quiz

What is accounting?

• A system of gathering financial information about a business and reporting this information to users.

• Looking at events that have taken place and thinking about how they will affect the business.

• Deciding the meaning and importance of the information in various reports.

• Telling the results.

What are forms and papers that provide information about a business transaction called?

• ledgers.

• accounts.

• journals.

• source documents.

What provides a chronological record of financial transactions expressed as debits and credits to accounts?

• journal.

• trial balance.

• balance sheet.

• ledger.

When delivery equipment is purchased on account, which accounts should be debited and credited respectively?

• Debiting Delivery Equipment and crediting Cash.

• Debiting Delivery Equipment and crediting Accounts Payable.

• Debiting Delivery Expense and crediting Accounts Payable.

• Debiting Delivery Expense and crediting Cash.

What is the position of a debit entry in a T account?

• Increases liabilities.

• Increases owner's equity.

• Is on the left side.

• Decreases assets.

What are the three major parts of a T account?

• a debit side, a credit side, and a balance

• a debit side, a credit side, and a total column

• a title, a current date, and a balance

• a title, a debit side, and a credit side

Increases are entered on the credit side of a(n)

• Liability account

• Drawing account

• Expense account

• Asset account

What term is used to describe an accounting period of twelve months' duration?

• Fiscal year

• Operational year

• Physical year

• Calendar year

Which financial statement should be completed first?

• Income statement

• Statement of financial condition

• Statement of financial position

• Balance sheet

What is the financial statement called that shows the state of the firm's assets, liabilities, and owner's equity on a specific date?

• Balance sheet

• Statement of operations

• Income statement

• Statement of financial position