ACTG101 MODULE 6-10 ACTUAL QUESTIONS AND
ACCURATE ANSWERS
deferrals - CORRECT ANSWER✅✅✅expense already paid but not yet incurred
accrual - CORRECT ANSWER✅✅✅expense already incurred but not yet paid
trial balance - CORRECT ANSWER✅✅✅to check the accuracy (recording in the general
ledger)
aids in locating errors
Preliminary trial balance adjusted trial balance post-closing trial balance - CORRECT
ANSWER✅✅✅the 3 trial balance
preliminary trial balance - CORRECT ANSWER✅✅✅the trial balance before adjustments
trial balance of balances - CORRECT ANSWER✅✅✅The traditional way of preparing the
trial balance only account with balances are listed
trial balance of totals - CORRECT ANSWER✅✅✅with or without balance are listed, used
for auditing purposes
adjusted trial balance - CORRECT ANSWER✅✅✅trial balance after adjustment
post-closing trial balance - CORRECT ANSWER✅✅✅trial balance after closing entries
financial statements - CORRECT ANSWER✅✅✅reports prepaid to inform the owner/s
about the status of the business
, accounting period - CORRECT ANSWER✅✅✅the period is at the end of which financial
statements are prepared
calendar year - CORRECT ANSWER✅✅✅a 12-month period which ends December 31
fiscal period - CORRECT ANSWER✅✅✅any 12-month period which does not end
December 31
natural business - CORRECT ANSWER✅✅✅year a 12 month period which ends in the
months business activities at their lowest
income statement - CORRECT ANSWER✅✅✅summaries the different revenues and
expenses of the business
shows if the business makes a profit or incurs a loss
shows the result of the business
nominal accounts - CORRECT ANSWER✅✅✅temporary accounts
balance sheet - CORRECT ANSWER✅✅✅shows the assets, liabilities, and owner's equity
of the business
shows the financial condition of business
real accounts - CORRECT ANSWER✅✅✅more or less permanent in nature
cash flow statement - CORRECT ANSWER✅✅✅shows the sources and uses of cash
shows the net cash flow
operating activities - CORRECT ANSWER✅✅✅transactions or activities that will affect net
income
ACCURATE ANSWERS
deferrals - CORRECT ANSWER✅✅✅expense already paid but not yet incurred
accrual - CORRECT ANSWER✅✅✅expense already incurred but not yet paid
trial balance - CORRECT ANSWER✅✅✅to check the accuracy (recording in the general
ledger)
aids in locating errors
Preliminary trial balance adjusted trial balance post-closing trial balance - CORRECT
ANSWER✅✅✅the 3 trial balance
preliminary trial balance - CORRECT ANSWER✅✅✅the trial balance before adjustments
trial balance of balances - CORRECT ANSWER✅✅✅The traditional way of preparing the
trial balance only account with balances are listed
trial balance of totals - CORRECT ANSWER✅✅✅with or without balance are listed, used
for auditing purposes
adjusted trial balance - CORRECT ANSWER✅✅✅trial balance after adjustment
post-closing trial balance - CORRECT ANSWER✅✅✅trial balance after closing entries
financial statements - CORRECT ANSWER✅✅✅reports prepaid to inform the owner/s
about the status of the business
, accounting period - CORRECT ANSWER✅✅✅the period is at the end of which financial
statements are prepared
calendar year - CORRECT ANSWER✅✅✅a 12-month period which ends December 31
fiscal period - CORRECT ANSWER✅✅✅any 12-month period which does not end
December 31
natural business - CORRECT ANSWER✅✅✅year a 12 month period which ends in the
months business activities at their lowest
income statement - CORRECT ANSWER✅✅✅summaries the different revenues and
expenses of the business
shows if the business makes a profit or incurs a loss
shows the result of the business
nominal accounts - CORRECT ANSWER✅✅✅temporary accounts
balance sheet - CORRECT ANSWER✅✅✅shows the assets, liabilities, and owner's equity
of the business
shows the financial condition of business
real accounts - CORRECT ANSWER✅✅✅more or less permanent in nature
cash flow statement - CORRECT ANSWER✅✅✅shows the sources and uses of cash
shows the net cash flow
operating activities - CORRECT ANSWER✅✅✅transactions or activities that will affect net
income
