COLLEGE ACCOUNTING CERTIFICATION
EVALUATION VERIFIED QUESTIONS WITH
COMPLETE SOLUTIONS
●● Account Receivable
Answer: A claim against the customer created by selling merchandise or
services on credit
●● Accounting Cycle
Answer: The process that begins with analyzing and journalizing
transactions and ends with the post closing trial balance.
●● Accrual Basis Accounting
Answer: Under this basis of accounting, revenues and expenses are
reported in the income statement in the period in which they are earned
or incurred.
●● Accrued Expenses
Answer: Expenses that have been incurred but not recorded in the
accounts.
●● Accrued Revenue
Answer: Revenue that has been earned but not recorded in the accounts.
, ●● Accumulated Depreciation
Answer: The contra asset account credited when recording the
depreciation of a fixed asset.
●● Adjusting process
Answer: An analysis and updating of the accounts when financial
statements are prepared.
●● Asset
Answer: The resources owned or controlled by a business.
●● Balance Sheet
Answer: A list of assets, liabilities, and owner's equity as of a specific
date, usually at the close of the last day of a month or year.
●● Book value
Answer: The cost of a fixed asset minus accumulated depreciation on the
asset.
●● Business transaction
Answer: An economic event or condition that directly changes an
entity's financial condition or directly affects its results of operations.
EVALUATION VERIFIED QUESTIONS WITH
COMPLETE SOLUTIONS
●● Account Receivable
Answer: A claim against the customer created by selling merchandise or
services on credit
●● Accounting Cycle
Answer: The process that begins with analyzing and journalizing
transactions and ends with the post closing trial balance.
●● Accrual Basis Accounting
Answer: Under this basis of accounting, revenues and expenses are
reported in the income statement in the period in which they are earned
or incurred.
●● Accrued Expenses
Answer: Expenses that have been incurred but not recorded in the
accounts.
●● Accrued Revenue
Answer: Revenue that has been earned but not recorded in the accounts.
, ●● Accumulated Depreciation
Answer: The contra asset account credited when recording the
depreciation of a fixed asset.
●● Adjusting process
Answer: An analysis and updating of the accounts when financial
statements are prepared.
●● Asset
Answer: The resources owned or controlled by a business.
●● Balance Sheet
Answer: A list of assets, liabilities, and owner's equity as of a specific
date, usually at the close of the last day of a month or year.
●● Book value
Answer: The cost of a fixed asset minus accumulated depreciation on the
asset.
●● Business transaction
Answer: An economic event or condition that directly changes an
entity's financial condition or directly affects its results of operations.
