Accounting Cycle & ledgers

Enika is learning about the accounting cycle in her business class. What is the accounting cycle?

• A method of calculating tax.

• A set of procedure followed in each accounting period.

• A way to manage cash flow.

• A system for tracking inventory.

What are source documents?

• Documents where original information can be found.

• Reports generated at the end of the year.

• Statements from the bank.

• Invoices sent to customers.

Gabriella is learning about accounting and wants to understand what journalizing means.

• Transfering data to ledgers.

• Preparing financial statements.

• Calculating tax liabilities.

• Recording transactions in the books of original entry.

During a class project, Mis Harry is tasked with preparing a trial balance for their group's finances. What is a trial balance?

• A list of all the debit and credit balances in the ledger.

• A summary of income and expenses.

• A report on cash flow.

• A document for tax purposes.

What are adjusting and closing entries?

• Adjustments made to certain accounts before final accounts are prepared.

• Entries made to record daily transactions.

• Final entries in the ledger.

• Entries for tax adjustments.

Mis Bright is preparing the final accounts for her small business. What is included in the preparation of final accounts?t

• Only cash flow statements.

• Only the balance sheet.

• Income statement and the statement of financial position.

• Tax returns.

_____-accounts deal with the possessions of the business

_________ is an example of a personal account.

The general ledger holds

• debtors accounts

• creditors accounts

• expenses & income accounts

• assets accounts

Another name for the sales ledger is

• creditors ledger

• general ledger

• expenses ledger

• debtors ledger