Accounting 1 Certification

What is the term for anything "owned" by a business?

• Revenue

• Owner's Equity

• Asset

• Liability

What statement is prepared after closing entries are posted?

• Income Statement

• Post-closing trial balance

• Balance sheet

• Trial balance

Select the correct order for the heading for a financial statement.

• Company name, Report name, Date

• Report name, Date, and Phone Number

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

• Dishonored/NSF check

• Canceled check

• Voided check

• Outstanding check

How is the accounting equation affected when cash is paid for supplies?

• Two assets are changed

• An asset and capital are changed

• An asset and liability are changed

• Two liabilities are changed

How are assets affected when the owner invested 1,000 in the business?

• Increased by $1,000

• Not affected

• Increased and decreased by $1,000

• Decreased by $1,000

WHAT IS THE TERM USED TO DESCRIBE THE STEPS COMPLETED TO RECORD FINANCIAL INFORMATION FOR A FISCAL PERIOD?

• FINANCIAL CYCLE

• FINANCIAL SYSTEM

• ACCOUNTING CYCLE

• ACCOUNTING EQUATION

Which of the following account categories are included in a post-closing trial balance?

• Revenue, expenses, drawing/withdrawals

• Assets, liabilities, owner's equity

• Assets, revenues, owner's equity

• Assets, liabilities, and expenses

What is the MINIMUM number of accounts that a business transaction affects?

• Three

• Two

• Four

• One

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

• Permanent

• Temporary

• Liability

• Asset