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Worksheets8 EMS - The Accounting Cycle
Total questions: 10
Worksheet time: 5mins
The first step in The Accounting Cycle (buying and selling) is called...
(a)
The evidence generated by Step 1 in The Accounting Cycle is called...
Source document
Evidence document
Proof document
The books of first entry in The Accounting Cycle are called...
Cash receipts journal - money received
Cash payments journal - money paid out
Both answers are correct.
The General Ledger is a summary of all the business accounts and happens after the subsidiary journals.
True
False
The Trial Balance is a summary of the General Ledger
True
False
Financial Statements are divided into: Income Statement and Balance Sheet
True
False
Income Statements are used to calculate Profit or Loss in a business.
True
False
Balance Sheets create a specific picture of the business and are a list of assets, liabilities and...
expenses
income
owner's equity
liquidity
The accounting term for 12 months
(a)
The effect on the bank account when goods or services are sold.
Bank increases
Bank decreases
Bank stays the same
