Accounting Review Quiz For Final Project
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The basic accounting equation is
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Assets + Revenue = Profit
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Assets + Liabilities = Owner's Equity
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Revenue + Assets + Owner`s Equity
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Assets = Liabilities + Owner's Equity
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The Accounting Review Quiz for Final Project assesses understanding of fundamental accounting principles. It includes evaluating the basic accounting equation, analyzing balance sheet reports, and preparing income statements. Essential for reinforcing accounting skills and knowledge.
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- 2.
The balance sheet reports the balances
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In asset, liability and owner`s equity accounts
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In revenues and expenses
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In assets and liabilities
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Revenues and owner's equity
Correct Answer
A. In asset, liability and owner`s equity accountsExplanation
The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It reports the balances in asset, liability, and owner's equity accounts. This means that it shows the values of the company's assets (such as cash, inventory, and property), liabilities (such as loans and accounts payable), and owner's equity (such as retained earnings and contributed capital). By reporting these balances, the balance sheet helps stakeholders understand the financial health and stability of the company.Rate this question:
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- 3.
The information needed to prepare the income statement comes from
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The general ledger
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The trial balance
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The balance sheet
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The journal
Correct Answer
A. The trial balanceExplanation
The income statement is prepared using information from the trial balance. The trial balance is a summary of all the accounts in the general ledger, which includes the balances of all the revenue and expense accounts. By using the trial balance, the accountant can determine the net income or loss for a specific period of time and present it in the income statement. The balance sheet, on the other hand, provides information about the company's assets, liabilities, and equity at a specific point in time, and the journal is used to record individual transactions.Rate this question:
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- 4.
Did GeorgeCo have a net income or loss in May?
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Net Income
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Net Loss
Correct Answer
A. Net IncomeExplanation
GeorgeCo had a net income in May.Rate this question:
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- 5.
Determining the debit and credit parts of each transaction is called
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Working the transaction
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Breaking down the transaction
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Analyzing the transaction
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Guessing
Correct Answer
A. Analyzing the transactionExplanation
Analyzing the transaction refers to the process of determining the debit and credit parts of each transaction. This involves carefully examining the details of the transaction and identifying which accounts are affected and how they are affected. By analyzing the transaction, one can accurately record the appropriate debits and credits in the accounting system, ensuring the accuracy of the financial records.Rate this question:
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Current Version
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Apr 23, 2024Quiz Edited by
ProProfs Editorial Team -
Apr 25, 2012Quiz Created by
Ben.brelje
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