Small Business Accounting - Chapter 1-3 Test Exams Questions and Complete solution.

Small Business Accounting - Chapter 1-3 Test Exams Questions and Complete Denning [Date] [Course title] Generally Accepted Accounting Principles, developed by the Financial Accounting Standards Board, provide procedures and guidelines to be followed in the accounting and reporting process. True or False - Correct Answer: True
The income earned from the performance of services or sale of products is called revenue. True or False - Correct Answer: True
To credit an account is to enter an amount on the left side of the account. - Correct Answer: False
A debit in an asset account may be offset by a(n) - Correct Answer: increase in owners' equity
List the accounting processes in the order in which they occur..... - Correct Answer: 1) Analyzing
2)Recording
3) Classifying
4)Summarizing
5) Reporting
6) Interpreting
Summarizing (4) - Correct Answer: Aggregating many similar events to provide information that is easy to understand
Analyzing (1) - Correct Answer: Looking to see what events have taken place and thinking about how they will affect the business
Classifying (3) - Correct Answer: Sorting and grouping like items together
Interpreting (6) - Correct Answer: Deciding the importance of information on various reports
Recording (2) - Correct Answer: Entering the information into the accounting system