Accounting Basics

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

• Ledger Account

• Journal Entries

• Profit and Loss Account

• Balance Sheet

• Statement of Cash Flows

Under the accrual basis of accounting, revenues are reported in the accounting period when the

• Transaction is carried out

• Money is received

• Money is paid

• None of the above

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as______

• Income

• Expenses

• Assets

• Liabilities

• Natural Resources

Owner and Business are separate. Which accounting assumption is applicable here?

• Accrual

• Going Concern

• Entity

• Conservatism

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

Under the accrual basis of accounting, revenues are reported in the accounting period when the:

• Cash is Received
• Service or Goods Have Been Delivered
• End of the Month Has Arrived
• Customer Pays

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Owner Equity
• Equity

Accounting entries involve a minimum of how many accounts?

• One
• Two
• Three
• Four

When cash is received, the account Cash will be

• Debited
• Credited

Which of the following are Assets?

• Bank Account

• Bank Loan

• Vehicles

• Bank overdraft

• Furniture and fittings