ACCTG

Question 1

the adjustments to be recorded
in the general journal

Answer 1

ADJUSTING ENTRIES

Question 2

an expense already paid but not yet incurred

Answer 2

Deferrals

Question 3

expense already incurred but not yet paid

Answer 3

Accrual

Question 4

(assets) expenses which customarily paid in advance / expire either with passage of time or through use and consumption

Answer 4

Prepaid Expense

Question 5

tells that the business will never die

Answer 5

Going Concern

Question 6

listing of all the balances of the different
accounts

Answer 6

Trial Balance

Question 7

before adjustments

Answer 7

Preliminary Trial Balance

Question 8

only the account with balance is listed (balance of debit and credit)

Answer 8

Trial Balance of Balances

Question 9

accounts without balances, used for auditing purposes (total of debit and credit)

Answer 9

Trial balance of Totals

Question 10

after adjustments

Answer 10

Adjusted Trial Balance

Question 11

after the closing entries

Answer 11

Post-closing Trial Balance

Question 12

serves as the means of communication

Answer 12

Financial Statements

Question 13

it is the end which financial statements are prepared

Answer 13

Accounting Period

Question 14

ends in December 31

Answer 14

Calendar Year

Question 15

does not end in December 31

Answer 15

Fiscal Period

Question 16

ends in the month business activities at their lowest

Answer 16

Natural Business Year

Question 17

summarizes the different revenues shows the results of operations of the business

Answer 17

Income Statement

Question 18

temporary accounts

Answer 18

Nominal Accounts

Question 19

show the changes in the owner’s equity.

Answer 19

Statement of Changes in Owner’s Equity

Question 20

show the assets, liabilities and owner’s
equity / shows the financial condition of the business

Answer 20

Balance Sheet

Question 21

permanent account

Answer 21

Real Accounts

Question 22

will show the sources and uses of cash

Answer 22

Cash Flow Statement

Question 23

will affect net income

Answer 23

Operating Activities

Question 24

will affect operating current assets

Answer 24

Investing Activities

Question 25

will affect non-operating current liabilities

Answer 25

Financing Activities

Question 26

only cash transactions are shown in the statement

Answer 26

Statement of Cash Flow

Question 27

decrease of the value of a non-current asset

Answer 27

Depreciation

Question 28

contra asset account

Answer 28

Accumulated Depreciation

Question 29

neither paid for by clients

Answer 29

Accrued Revenues

Question 30

allows clients to purchase goods

Answer 30

Uncollectible Accounts

Question 31

accounting process / procedures involved are repeated

Answer 31

Accounting Cycle

Question 32

gathering source documents

Answer 32

Documentation

Question 33

recording the business transactions

Answer 33

Journalizing

Question 34

transferring the entries

Answer 34

Posting

Question 35

prepared the accuracy of posting

Answer 35

Preliminary Trial Balance (Unadjusted Trial Balance)

Question 36

to facilitate the preparation

Answer 36

Worksheet (Working Paper)

Question 37

prepared at the end of the accounting period

Answer 37

Financial Statements

Question 38

entries prepared in the general journal at the end

Answer 38

Closing entries

Question 39

income accounts have credit balances

Answer 39

Close the Income Account

Question 40

expense accounts have debit balances

Answer 40

Close the Expense Account

Question 41

the balance of the income summary account will be equal

Answer 41

Close the Income Summary Account

Question 42

shows the amount by which capital is reduced

Answer 42

Close the Withdrawal Account

Question 43

to carry forward in the next accounting period

Answer 43

Operating Entry

Question 44

is a journal entry that is the exact opposite of a related adjusting entry.

Answer 44

Reversing Entries

Question 45

Accounts to be reversed

Answer 45

• Accrued Income
  * Accrued Expenses
  * Prepaid Expenses
  * Unearned Income

Question 46

Two ways of presenting the statement of cash flows

Answer 46

• Direct Method
• Indirect Method

Question 47

Usual adjustments made at the end of an accounting period

Answer 47

• Unused supplies
  
  • Prepaid expense
  • Accrued expense
  • Unearned income
  • Accrued income

Question 48

Formula of interest

Answer 48

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