Accounting Cycle Part 2 Flashcards
Which financial provides a summary of a company’s revenue and expenses over a period of time?
The Income statement
Which financial statement provides you with the owner’s change in capital over time?
The statement of equity
Which statement shows the balance of a company’s assets, equity and liability?
The balance sheet
Which of the following financial statements provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investments?
The statement of cash flow
Which statement shows the cash inflows and outflows for a particular month?
Statement of cash flow
What account should have a balance of $0 beginning at each new accounting period?
Revenue
A business owner performs a service and IS paid when the job is performed. The owner would then enter this transaction into accounting software :
A sales receipt
A business owner performs a service but IS NOT paid when the job is performed. The owner should enter the transaction as
An invoice
True or false: The ending balance on the statement of cash flow should not equal the cash balance reported on the balance sheet
False
A customer paid in advance for a service. They need to cancel the service. If the business owner wishes to apply that money towards the customer’s next service, the owner would enter that transaction into their accounting software as:
A credit memo
True or False: In order to complete a statement of equity, you will need the net profit from the income statement
True
True or False: Business owners should use the general ledger to make financial decisions
False
A balance sheet as four parts: heading, assets, liabilities, and ________
equity
True or false: Financial Statements should be produced before any adjustment’s have been made
False
An owner has deposited several payments they’ve received from customer’s into the businesses’ bank account The owner would then enter this transaction into their accounting software as:
A Bank Deposit
