COLLEGE ACCOUNTING CERTIFICATION EVALUATION VERIFIED QUESTIONS WITH COMPLETE SOLUTIONS

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.