Podcast
Questions and Answers
What is the primary purpose of a trial balance?
What is the primary purpose of a trial balance?
- To record all financial transactions chronologically
- To provide a detailed analysis of business performance
- To calculate the total revenue and expenses for the accounting period
- To summarize all the ledger accounts at a specific point in time (correct)
What is the function of a journal in accounting?
What is the function of a journal in accounting?
- To list all the assets and liabilities of a business
- To provide a detailed breakdown of the income and expenses of a business
- To record all financial transactions in chronological order (correct)
- To categorize and summarize the financial transactions of a business
Which type of account represents money owed to the business by its customers?
Which type of account represents money owed to the business by its customers?
- Equity account
- Asset account (correct)
- Liability account
- Expense account
What is the purpose of a ledger in accounting?
What is the purpose of a ledger in accounting?
Which type of account would inventory be classified as?
Which type of account would inventory be classified as?
What is the purpose of a trial balance in accounting?
What is the purpose of a trial balance in accounting?
Flashcards
What is a trial balance?
What is a trial balance?
A summary of all ledger accounts at a specific point in time, used to verify the accuracy of the accounting records.
What is the purpose of a journal?
What is the purpose of a journal?
To record all financial transactions in chronological order, like a diary for your business.
What is an accounts receivable account?
What is an accounts receivable account?
An account that represents the money owed to the business by its customers, like a promise of future cash inflow.
What is the purpose of a ledger?
What is the purpose of a ledger?
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What type of account is inventory?
What type of account is inventory?
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What is the purpose of a trial balance?
What is the purpose of a trial balance?
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