Accounting

Question 1

double entry bookkeeping

Answer 1

Every transaction should affect at least 2 accounts

Debits and credits must balance

Question 2

A company’s obligation to pay is known as

Answer 2

A liability

Question 3

Items of value owned by the business are known as

Answer 3

Assets

Question 4

What are the 2 basic payroll journal entries?

Answer 4

Paying employees and paying taxes

Question 5

The owners investment in the business is known as

Answer 5

Capital

Question 6

The list of the accounts in the chart of accounts, and balances that correspond to each, is known as

Answer 6

Trial balance

Question 7

Balance sheet equation (accounting equation)

Answer 7

Liability + equity = assets

Question 8

Revenues should be reflected in the same period as the cost incurred to generate them, is referring to what concept?

Answer 8

Matching concept

Question 9

The going concern is what?

Answer 9

An assumption that the business entity is financially viable and will continue in existence into the foreseeable future

Question 10

Components of a financial statement

Answer 10

Balance sheet
Income statement
Statement of changes in equity
Statement of cash flows

Question 11

Compound journal entry

Answer 11

An accounting entry that effects more than 2 accounts