Podcast
Questions and Answers
Which principle requires that a company's financial statements are complete and accurately reflect its financial position?
Which principle requires that a company's financial statements are complete and accurately reflect its financial position?
- Full disclosure principle (correct)
- Economic entity assumption
- Going concern principle
- Matching principle
What principle of accounting dictates that expenses should be matched with the revenues they help to generate?
What principle of accounting dictates that expenses should be matched with the revenues they help to generate?
- Consistency principle
- Matching principle (correct)
- Relevance principle
- Fair value principle
Which accounting principle implies that a business will continue operating indefinitely?
Which accounting principle implies that a business will continue operating indefinitely?
- Accrual principle
- Going concern principle (correct)
- Monetary unit assumption
- Historical cost principle
What assumption underlies the separation of a business's financial transactions from its owner's personal financial transactions?
What assumption underlies the separation of a business's financial transactions from its owner's personal financial transactions?
Which principle requires that financial information should be reported in a way that is understandable to the users?
Which principle requires that financial information should be reported in a way that is understandable to the users?
What is the first step in the accounting cycle?
What is the first step in the accounting cycle?
Which step follows the posting into the ledger?
Which step follows the posting into the ledger?
What is required after extracting the trial balance?
What is required after extracting the trial balance?
At what stage are adjustments reflected in the financial records?
At what stage are adjustments reflected in the financial records?
Which step is the last in the accounting cycle?
Which step is the last in the accounting cycle?
Flashcards
Accounting Equation
Accounting Equation
Assets = Liabilities + Equity
Revenue
Revenue
Increases in assets or decreases in liabilities from the sale of goods or services.
Expense
Expense
Costs incurred in generating revenue.
Assets
Assets
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Liabilities
Liabilities
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Source Documents
Source Documents
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Journalize
Journalize
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Trial Balance
Trial Balance
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Adjustments
Adjustments
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Final Accounts
Final Accounts
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Study Notes
Steps of the Accounting Cycle
- Collect source documents
- Journalize
- Post into ledger
- Extract a trial balance
- Make adjustments
- Prepare adjusted trial balance
- Create final accounts
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Description
Test your knowledge of fundamental accounting principles with this quiz. Explore concepts such as completeness of financial statements, matching expenses with revenues, and the going concern assumption. Perfect for students studying accounting and finance.
