Financial Accounting Chapters 1-4

What account is used to track amounts owed to vendors?

If a company sells goods to a customer on credit, which account is used to track the amount owed by the customer?

What is the process of transferring debit and credit information from the journal to individual general ledger accounts called?

Which side of a T-account represents credits?

What is a trial balance used for?

Which of the following is NOT a purpose of a trial balance?

What is the primary objective of adjusting entries?

What happens to the accounting period after final financial statements are prepared?

Which of the following is NOT considered an investing activity?

What is the primary purpose of financial accounting?

Which of the following is NOT a key financial statement?

Which of the following would be classified as a liability?

What is the purpose of the statement of stockholders’ equity?

What is the difference between accrual-basis accounting and cash-basis accounting?

What does it mean to “close” temporary accounts at the end of the accounting period?

Which of the following is NOT a characteristic of a corporation?

What journal entry should be made to record the write-off of a specific customer account receivable that is deemed uncollectible?

What is the purpose of using the allowance method for uncollectible accounts?

When a company writes off an uncollectible account, what is the impact on total assets and total expenses?

How does the allowance method differ from the direct write-off method for uncollectible accounts?

Which of the following statements regarding the allowance for uncollectible accounts is true?

What does the term 'aging of accounts receivable' refer to?

Which of the following is NOT a factor that would influence a company's estimate of uncollectible accounts?

What is the general journal entry to record the adjustment for estimated uncollectible accounts using the allowance method?

Which account is used to track the total amount of depreciation expense that has been recorded for all plant, property, and equipment assets?

A company purchases office supplies on credit. Which account is used to track the amount owed to the supplier?

Which of the following accounts would be increased when a company receives cash from a customer for an outstanding invoice?

What is the purpose of the 'Lower of Cost or Market Adjustment' in the Inventory account?

Which of the following accounts would be used to track the estimated amount of uncollectible receivables from customers?

A company pays for a one-year insurance policy in advance. Which account would be credited to record the payment?

A company writes off a specific customer account as uncollectible. Which of the following accounts would be affected?

Which account is used to track the amount of wages owed to employees but not yet paid?

Which of the following is NOT considered a typical adjustment to be made at the end of an accounting period?

What is the main purpose of closing temporary accounts at the end of an accounting period?

When a company receives cash in advance from customers for goods or services that will be delivered later, what type of account arises?

Which of the following BEST describes the concept of accrued expenses?

What is the primary difference between accrued revenues and deferred revenue?

In the context of accounting, when does revenue recognition typically occur?

What is the primary purpose of preparing a trial balance after adjustments have been posted?

Which of the following is NOT transferred to Retained Earnings when closing the temporary accounts at the end of the accounting period?

What is the primary difference between operating income and pre-tax income?

Which of the following individuals or entities is NOT typically considered a stakeholder in a company?

What is the role of source documents in accounting?

Which of the following sub-totals in a multi-step income statement is calculated by subtracting the cost of goods sold from sales revenues?

The Expanded Accounting Equation demonstrates the relationship between:

Which of the following best describes the meaning of "on credit" or "on account" in the context of a transaction between two businesses?

When a company records its transactions using debits and credits, what is the primary goal?

What is the primary purpose of the Statement of Cash Flows?