Recording Financial Transactions

What type of account is Accounts Payable?

• Assets

• Expenses

• Liabilities

• Revenues

What type of account is Account Receivable?

• Assets

• Expenses

• Liabilities

• Revenues

What type of account is

"Prepaid Insurance"?

• Owner's Equity

• Expenses

• Assets

• Liabilities

A listing of the accounts in order to determine whether debits are equal to credits is a __________

The book of original entry is the definition of a __________.

• Journal

• Ledger

When a sale is made on credit, the seller will debit the asset account "Accounts __________"

Financial accounting is focused on the __________ financial statements of a company.

• Internal

• External

The accounting equation is Assets = __________ + Owner's Equity.

The profitability of a company for a specified period of time is reported on the __________ statement.

Which financial statement's structure is closest to that of the basic accounting equation?

• Income Statement

• Statement Of Stockholders’ Equity

• Balance Sheet

• Statement Of Cash Flows