10 Questions
Which accounts are considered Real Accounts in the accounting equation?
Assets, Liabilities, and Equity
Where are the nominal accounts positioned in the financial statements?
At the end, after expenses
What is the mnemonic for remembering the normal balances of Real Accounts?
DEA LER
What is the purpose of a source document in the accounting cycle?
To provide original written evidence of transactions
What is the function of a journal in the accounting cycle?
To provide a chronological record of the entity’s transactions
Which accounts are included in Real Accounts according to the accounting equation?
Assets, Liabilities, and Equity
What is the mnemonic for remembering the normal balances of Real Accounts?
DEA LER
What is the purpose of a source document in the accounting cycle?
To provide original written evidence of transactions
In the Chart of Accounts, how are the accounts arranged in the financial statements?
Assets first, followed by liabilities, owner’s equity, income, and expenses
What is the function of a journal in the accounting cycle?
To provide a chronological record of the entity’s transactions
Test your knowledge of accounting basics with this quiz on recording business transactions. Explore the accounting equation and understand the balance between assets, liabilities, and equity. Learn about the normal balances of various accounts and the distinction between real and nominal accounts. Delve into the chart of accounts and enhance your understanding of financial statements.
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