Beginning Accounting & Bookkeeping Quiz
Fill in the blank for each question. The correct answer will appear after you type your answer.
1. The primary purpose of accounting is to provide financial information to _________.
2. The accounting equation is Assets = Liabilities + _________ Equity.
3. Anything of value owned by a business is called an _________.
4. Amounts owed by a business to others are known as _________.
5. The financial statement that shows a company's financial position at a specific point in time is the Balance _________.
6. The financial statement that reports a company's revenues and expenses over a period of time is the Income _________.
7. Revenue minus expenses equals Net _________.
8. The system of recording financial transactions where every transaction affects at least two accounts is called _________-entry bookkeeping.
9. A record of all the accounts used by a business is called the Chart of _________.
10. An increase in an asset or expense account is recorded with a _________.
11. An increase in a liability, equity, or revenue account is recorded with a _________.
12. The chronological record of all transactions is kept in a _________.
13. The process of transferring entries from the journal to the ledger is called _________.
14. The sum of all debits must always equal the sum of all _________.
15. An account that reduces the balance of another account is called a _________ account.
16. The cost of goods or services used in the process of generating revenue is an _________.
17. Money earned from providing goods or services is called _________.
18. The process of verifying that the bank's records match the company's records is called bank _________.
19. The accounting period can be a month, a quarter, or a _________.
20. The concept that states a business will continue to operate indefinitely is the _________ concern principle.
21. The systematic allocation of the cost of a tangible asset over its useful life is called _________.
22. The money invested by the owners into the business is called Owner's _________.
23. Cash, accounts receivable, and inventory are examples of _________ assets.
24. Accounts payable and salaries payable are examples of _________ liabilities.
25. The document that provides evidence of a transaction is called a source _________.