Expenditures made for advertising are recorded in a revenue account.

A Chart of Accounts is a coded listing of all the accounts in the General Ledger.

The Income Statement is a financial report that shows all the assets, liabilities, and owner's equity of a business.

Accounts Receivable are amounts a business owes to others.

The Basic Accounting Equation is Assets + Liabilities = Owner's Equity

A credit to a Liability or Revenue Account increases the account's balance.

If a business uses the Double Entry Accounting System, Debits should always equal Credits.

The Single Entry Accounting System records a debit and credit for each transaction.

A Trial Balance is a tool used to help prepare Financial Statements.

Property is another term used for Assets.

Profit is the amount that a business's Revenues exceeds its Expenses.

Revenues are amounts that a business earns by selling products or services.

A debit is an entry that increases a liability or an owner's equity account and decreases an asset or expense account.

A T-Account is a formal accounting record.

Plant Machinery is a type of asset.

Owner's Equity (Capital) is the amount left for owner(s) after all debts have been paid.

An Invoice that a business owes to a supplier is a Liability.

A debit decreases the balance of an expense account while a credit increases the balance.

Owner's Equity increases as a result of-

A debit decreases the balance of an asset account and a credit increases the balance.

The owner's claim to the assets (property) of a business is reflected in the balance of what type of account ?

Which of the following type of account is not included in an Income Statement ?

Which of the following type of account is not included in a Balance Sheet ?

The initial record used to first enter business transactions into the accounting records is called-

A Balance Sheet is simply a financial picture of a business at a specific point in time.

The Cash Basis of Accounting records revenues in the period earned and expenses in the period incurred.

The account Cash is an example of what type of account ?

Which of the following is not a type of Expense ?

Debits are posted to the Left Side (Column) of an account and Credits are posted to the Right Side (Column) of an account.

The most liquid asset a business possesses is ?

A debit can increase some account balances and also decrease other account balances.

Which Type of Accounts have a Normal Debit Balance ?

What Type Of Accounts have Normal Credit Balances ?

The financial statement that summarizes revenue and expenses for a period of time such as a year is -

Net Income (Profit) results when expenses exceed revenues for a period of time.

The formal Financial Statements are prepared from information contained in the Trial Balance.

Businesses that sell products have a special section in their Income Statement called Cost Of Goods Sold.

An Income Statement is often referred to as a Profit and Loss Statement.

All Balance Sheets have the same basic categories of Income and Expenses.

The financial statement that summarizes all the changes in owner's equity that occurred during a period is called the Capital Statement.

Liabilities are the properties used in the operation or investment activities of a business.

All the revenue, expense, and draw accounts are reset to zero at the end of a business's accounting year.

The Statement Of Cash Flows reports the sources and uses of cash for a period of time.

A Calendar Year is a year that begins in June and ends in May.

The General Ledger is commonly referred to as the "Book Of Original Entry".

Journal Entries are posted or transferred to the-

Most businesses in the "real world" record all their transactions in the General Journal.

Which of the following is not a Special Journal ?

All transactions are first entered into a record called a Journal.

The formal record that contains the summarized balances of all the accounts is called-

Accounting is the process of recording and classifying business transactions.

A sole proprietorship is a type of business organization made up of many owners.

The Double Entry Accounting System is the recommended method to use for maintaing a business's accounting records.

The Calendar Year is the accounting period used by most businesses.

One of the major benefits of a good bookkeeping system is the information provided for decision making.