WorksheetsABM QUIZ
Total questions: 45
Worksheet time: 24mins
the principle that every business event and transaction must be expressed in terms of a common denominator currency.
Assumption of Time Period
Principle of Conservatism
Assumption of Monetary Measure
This involves expenses being recognized and recorded in the same period as the revenues associated with those expenses (under accrual accounting).
Principle of Revenue Recognition
Principle of Cost Recognition
Principle of Matching of Income and Expenses – MATCHING PRINCIPLE
an accounting assumption that a business will continue its operations for the foreseeable future.
Assumption of Continuity as a Going Concern
Accrual Basis
Assumption of Time Period
recognizes business revenue and matching expenses when they are generated (not when money actually changes hands)
Matching Priniciple
Principle of Revenue Recognition
Accrual Basis
All probable losses are recorded when they are discovered, while gains can only be registered when they are fully realized
True
False
It requires that any business expenses incurred must be recorded in the same period as related revenues. (In other words, it formally acknowledges that business must spend money in order to earn revenue).
Matching Principle
Accrual Basis
Principle of Cost Recogniton
The principle requires that businesses recognize revenue when it's earned (accrual accounting) rather than when payment is received (cash accounting).
Principle of Revenue Recognition
Matching Principle
Principle of Cost Recognition
a principle that requires company accounts to be prepared with caution and high degrees of verification.
Accrual Basis
Principle of Conservatism
Assumption of Continuity as a Going Concern
an accounting principle which states that a business should report their financial statements appropriate to a specific time period.
Assumption of Continuity as a Going Concern
Assumption of Time Period
Accrual Basis
What is a statement of cash flow?
a one-page report showing the difference between total assets and total liabilities, resulting in the overall value of owner's equity.
Shows the financial position of the company.
a financial statement that summarizes the amount of cash flowing into and out of a company.
What is a statement of owner's equity?
a one-page report showing the difference between total assets and total liabilities, resulting in the overall value of owner's equity.
is a financial statement that summarizes the amount of cash flowing into and out of a company.
a financial report detailing a company's income and expenses over a reporting period. It can also be referred to as a profit and loss (P&L) statement.
choose the accounts that are credit
Capital
Expense
Income
Liability
Asset
What is an income statement?
is a financial statement that summarizes the amount of cash flowing into and out of a company.
is a one-page report showing the difference between total assets and total liabilities, resulting in the overall value of owner's equity.
is a financial report detailing a company's income and expenses over a reporting period. It can also be referred to as a profit and loss (P&L) statement.
An aspect of accrual accounting that stipulates when and how businesses "recognize" or record their revenue.
Principle of Cost Recognition
Revenue Recognition
Matching Principle
What is a Balance Sheet?
a one-page report showing the difference between total assets and total liabilities, resulting in the overall value of owner's equity.
Summary of the financial balances of an individual or organization. Shows the financial position of the company.
a financial statement that summarizes the amount of cash flowing into and out of a company.
The normal balance of Cash on Hand is credit
True
False
Net Loss is an addition to Capital Account
TRUE
FALSE
The Accounting Equation is Asset = Liabilities + Capital
True
False
It can also be referred to as a profit and loss (P&L) statement
Statement of Cash flow
Balance sheet
Income Statement
Expense account is a decrease from Accounts Receivable
True
FALSE
Prepaid insurance should be posted in Capital account
TRUE
FALSE
Merchandise Inventory is a Liability account
True
False
Balance Sheet shows the result of an operation
TRUE
FALSE
Source document is any official and legal financial record and a basis in recording transactions
TRUE
FALSE
Depreciation expense is an asset account
TRUE
FALSE
To journalize means to create accounting entries
TRUE
FALSE
This step identifies the transactions that have been made during the accounting period
Analyze
Identify
Post to GL
It represents the amount owned by the customers
Accrued Revenue
Income Statement
Journal Voucher
A ledger that is used to post all the journal entries
General Journal
Journal Voucher
Bookkeeping
Evidence of all the transactions made
Adjusted journal Entry
Journal Voucher
General Journal
Used to adjust or correct the previous entries
Bookkeeping
Matching Principle
Adjusted Journal Entry
Process of recording the company's financial transactions
Accrued Revenue
Journal Voucher
Bookkeeping
An insurance paid in advance
Petty Cash fund
Prepaid Insurance
Cash on hand
Choose the accounts that are assets
Cash in bank
Prepaid Insurance
Miscellaneous Expense
Office Furniture and Equipment
Accounts Payable
Choose the accounts that are liabilities
Accounts Payable
Registration and License
Accrued Expenses
Communication Expense
Unearned Income
Choose the accounts that are assets
Merchandise Inventory
Communication Expense
Office Supplies
Accounts Receivable
Cash on hand
What normal balance is Asset?
CREDIT
DEBIT
What normal balance is Liabilty?
Credit
Debit
What normal balance is Income?
CREDIT
DEBIT
What normal balance is Capital?
CREDIT
DEBIT
What normal balance is Expense
CREDIT
DEBIT
Choose the accounts that are expense
Utilities Expense
Accrued Expense
Registration and License
Communication Expense
Accounts Payable
Choose the accounts that are Expense
Petty Cash fund
Accrued Expense
Miscellaneous Expense
Land and Bldg.
Transportation Expense
It is a series of repetetive steps performed during a specific accounting period
Bookkeeping
Accounting Cycle
Journalizing
It is any official and legal financial record which contains details of a specific transaction
General Ledger
Income Statement
Source Document
