20 Questions
Cash, AR, and PPE are examples of nominal accounts.
False
Real accounts are closed at the end of the accounting period.
False
Prepaid expenses are an example of a mixed account.
True
A clearing account holds information temporarily until it is transferred to other ledger accounts.
True
A controlling account summarizes information in a subsidiary ledger.
True
A suspense account holds information temporarily until it is disposed of.
True
Reciprocal accounts have counterparts in other books or ledgers.
True
Principal accounts can stand alone.
True
Auxiliary accounts are technically assets, liabilities, income, or expenses.
False
Posting is the process of transferring data from the journal to the general ledger and subsidiary ledger.
True
True or false: There are 9 basic steps in the accounting cycle?
True
True or false: The accounting cycle consists of two phases known as recording and summarizing?
True
True or false: Analyzing the transaction involves gathering information from source documents?
True
True or false: The equation 'assets equals liabilities plus equity' represents the financial position?
True
True or false: Journalizing is the process of recording transactions in the appropriate journals?
True
True or false: A journal is a chronological record of all transactions?
True
True or false: Special journals are more efficient in recording a large number of like transactions?
True
True or false: The sales journal is used for recording all types of cash receipts?
False
True or false: The purchase journal is used to record all purchases on account?
True
True or false: Real accounts are closed and carryover to the next accounting period?
False
Test your knowledge of the accounting cycle with this quiz! Learn about the 9 basic steps, including the recording and summarizing phases. Explore topics such as analyzing transactions, source documents, and the impact on financial position. Challenge yourself and enhance your understanding of accounting principles.
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