office equipment

You have just purchased a new piece of office equipment for your business using cash. How would you record this entry?

Debit assets and credit cash.

Credit assets and debit cash.

Debit expenses and credit cash.

balance sheet

When land is recorded at its purchase price and that original price is maintained in the balance sheet, even though market value may increase over time, which of the following principles is at work?

Historical cost principle

Periodicity assumption

Revenue recognition

Depreciation

revenue production

Which of the following is used for costs that are not seen as benefiting any future periods and are not linked to any revenue production?

Periodicity assumption

Immediate recognition

Systematic allocation

The matching principle

 

business affairs

Analysis of each __________ is important to maintaining the accountability over a business affairs.

accounting cycle

chart of accounts

trial balance

transaction

purchase of assets

Which of the following is the process for recording the purchase of assets and then gradually transferring their cost to expense?

Depreciation

Matching principle

Prepaid expenses

Immediate recognition

journal entry

The primary accounts impacted by a journal entry that records newly completed work for which you were previously paid are __________ .

unearned revenue and revenue.

cash and accounts receivable.

unearned revenue and cash.

revenue and expense.

transactions

Which of the following is used to review transactions to ensure they are posted to the correct accounts?

General journal

Journal account

General ledger

Account ledger

floristry business

Tye is conducting the closing process on the year for his floristry business, Sunflowers. To transfer the balances of Sunflowers’ expense accounts, Tye would debit to expense accounts and credit to retained earnings account.

FALSE

TRUE

accounting period

Which type of account is carried forward into the new accounting period?

Revenue

Expense

Equity

Dividend

business transactions

Which of the following is used to summarize and interpret all business transactions, resulting in useful financial data for the purposes of investment and business management?

Source documents

Accounting systems

Chart of Accounts

General Ledger