ACCCOB1 Module 1 Questions And Answers 2023 Update

ACCCOB1 Module 1 Questions And Answers 2023 Update AICPA definition of accounting - ANS-The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events that are, in part at least, of a financial character, and interpreting the results thereof PICPA definition of accounting - ANS-A system that measures business activities, processes given information into reports, and communicates those findings to decisionmakers 9 basic steps in the accounting cycle - ANS-1. Analyzing business transactions and journalizing 2. Posting to the general ledger 3. Trial balance preparation 4. Worksheet preparation 5. Journalizing and posting adjusting entries 6. Preparing financial statements 7. Journalizing and posting closing entries 8. Preparing post-closing trial balance 9. Journalizing and posting reversing entries Purpose of periodicity - ANS-Allows for a timely measurement of accounting information At the end of each time period, these are prepared - ANS-1. Accounting reports 2. Financial statements Interim period - ANS- Income summary - ANS-a temporary account used in closing revenue and expense accounts. It summarizes the net income or net loss for the period. Its balance is opposite the normal balance of nominal accounts. Post-closing trial balance - ANS-A trial balance prepared after the closing entries are posted. Only contains REAL ACCOUNTS. Unadjusted trial balance - ANS-List of accounts and balances (trial balance) prepared before accounting adjustments are recorded and posted. Adjusted trial balance - ANS-A list of accounts and their balances (trial balance) after all adjustments have been made Reversing entries - ANS- Continues...