Podcast
Questions and Answers
What type of account is affected by the closing process?
What type of account is affected by the closing process?
- Liability account
- Capital account (correct)
- Asset account
- Expense account
What best describes an accrued revenue?
What best describes an accrued revenue?
- An amount earned but not collected (correct)
- An amount not collected and not earned
- An amount earned and collected
- An amount collected but not earned
What is the fundamental purpose of accounting that is NOT correct?
What is the fundamental purpose of accounting that is NOT correct?
- To provide quantitative information
- To provide timely information
- To provide qualitative information (correct)
- To provide financial information
What is the term for an entity's ability to adapt to changes?
What is the term for an entity's ability to adapt to changes?
What is the criterion by which accounting information can be judged?
What is the criterion by which accounting information can be judged?
What is the primary purpose of source documents in the accounting cycle?
What is the primary purpose of source documents in the accounting cycle?
What is the effect of a cash purchase of inventory on total assets?
What is the effect of a cash purchase of inventory on total assets?
What type of account is credited when recording an increase in revenue?
What type of account is credited when recording an increase in revenue?
What is the purpose of adjusting entries involving doubtful accounts?
What is the purpose of adjusting entries involving doubtful accounts?
What type of account is initially recorded when an advanced payment is made for an expense?
What type of account is initially recorded when an advanced payment is made for an expense?
What is the purpose of a trial balance?
What is the purpose of a trial balance?