Financial Accounting Quiz

What is the first step in the accounting cycle?

• Prepare Journal Entries

• Analyze Transactions

• Prepare Unadjusted Trial Balance

• Post Journal Entries

What is a journal in accounting?

• A collection of all accounts and transactions

• A chronological record of business transactions

• A listing of all account titles and numbers

• A listing of all accounts with ending balances

What is the purpose of a ledger?

• To record transactions in chronological order

• To list all accounts with their ending balances

• To summarize increases and decreases in accounts

• To provide evidence of business transactions

What is a trial balance?

• A listing of all accounts with ending balances

• A chronological record of transactions

• A document providing evidence of transactions

• A collection of all accounts and transactions

What is the purpose of a chart of accounts?

• To provide a table of contents for the ledger

• To list all accounts with their ending balances

• To record transactions in chronological order

• To summarize increases and decreases in accounts

What is a source document?

• A collection of all accounts and transactions

• A listing of all accounts with ending balances

• A chronological record of transactions

• Evidence of a business transaction

What is the role of a journal entry?

• To summarize increases and decreases in accounts

• To provide evidence of a business transaction

• To list all accounts with their ending balances

• To record a business transaction in the journal

What is the order of accounts in a trial balance?

• Equity, Revenue, Expense, Asset, Liability

• Revenue, Expense, Asset, Liability, Equity

• Asset, Liability, Equity, Revenue, Expense

• Liability, Asset, Equity, Revenue, Expense

What is the purpose of numbering accounts?

• To list all accounts with their ending balances

• To record transactions in chronological order

• To provide evidence of business transactions

• To help locate accounts when recording data

What is a book of original entry?

• A chart of accounts

• A journal

• A trial balance

• A ledger