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Accounting Cycle (Pre-test)

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is the first step in the accounting cycle?

a)

Posting to the ledger

b)

Identifying and analyzing transactions

c)

Preparing financial statements

d)

Making adjusting entries

2.

Which document is used to record transactions for the first time?

a)

General Ledger

b)

Worksheet

c)

General Journal

d)

Trial Balance

3.

What do you call the process of transferring journal entries to the ledger?

a)

Posting

b)

Adjusting

c)

Recording

d)

Closing

4.

What is the purpose of the trial balance?

a)

To check if total debits equal total credits

b)

To close temporary accounts

c)

To prepare adjusting entries

d)

To summarize revenues only

5.

Which step comes before preparing financial statements?

a)

Closing entries

b)

Adjusted trial balance

c)

Adjusting entries

d)

Posting to the ledger

6.

What do you call journal entries made to update accounts at the end of the period?

a)

Reversing entries

b)

Adjusting entries

c)

Posting entries

d)

Opening entries

7.

Which accounts are closed at the end of the accounting period?

a)

Asset and liability accounts

b)

Revenue, expense, and drawing accounts

c)

Capital accounts only

d)

All accounts

8.

What is the final step of the accounting cycle?

a)

Adjusting entries

b)

Reversing entries

c)

Closing entries

d)

Preparing post-closing trial balance

9.

Which financial statement is prepared first?

a)

Balance Sheet

b)

Income Statement

c)

Statement of Owner’s Equity

d)

Cash Flow Statement

10.

What is the purpose of closing entries?

a)

To correct errors in the ledger

b)

To prepare accounts for the next period

c)

To record cash flows

d)

To update assets and liabilities