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WorksheetsCHAPTER 3: ACCOUNTING CYCLE
Total questions: 10
Worksheet time: 6mins
Accounting cycle is the process by which companies produce their financial statements for a specific period.
TRUE
FALSE
Net income (loss) will be calculated in the cash flow statements.
TRUE
FALSE
..................shows how capital changed during the period due to owner contributions, net income (or net loss) and owner withdrawals
Statement of Comprehensive Income
Statement of Owner's Equity
Statement of Financial Position
The accounting cycle begins by recording _____________ in the form of journal entries.
Business transactions
Financial information
Corporate minutes
Business contracts
After a business transaction has occurred, journal entries are recorded in the...............
General Ledger
General Journal
Expense Account
Statement of Financial Position
Once journal entries are recorded, they can be posted to..........
General Journals
Ledger Accounts
Statement of Comprehensive Income
Expense Reports
Entries that are made at the end of a period to correct accounts before financial statements are prepared:
Closing entries
Adjusting entries
Reversing entries
Journal entries
Reports that can be prepared from the adjusted trial balance:
Financial Statements
Expense Reports
Inventory Reports
Payroll Spending Reports
A journal is also known as book of original entry.
TRUE
FALSE
A journal is prepared on the concept of single entry system.
TRUE
FALSE
