COLLEGE ACCOUNTING COMPREHENSIVE TEST PAPER QUESTIONS AND SOLUTIONS GRADED APLUS

COLLEGE ACCOUNTING COMPREHENSIVE
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED APLUS

●● Merchandising Business
Answer: a business that buys a product from another business to sell to
customers


●● Fiscal year
Answer: Accounting period of 12 months


●● Processing
Answer: recognizing the effect of transactions on the assets, liabilities,
owner's equity, revenues, and expenses of a business


●● Income statement
Answer: financial statement that reports the profitability of business
operations for a specific period of time


●● Balance Sheet
Answer: financial statement that reports a firm's assets, liabilities, and
owner's equity on a specific date

, ●● Footings
Answer: the total dollar amounts on the debit and credit sides of an
account


●● Double-entry accounting
Answer: A system in which each transaction has a dual effect on the
accounting elements


●● Balance
Answer: The difference between the footings of an account


●● Chart of accounts
Answer: a list of all accounts used by a business


●● Accrual Basis of accounting
Answer: a method of accounting under which revenues are recorded
when earned and expenses are recorded when incurred


●● Depreciable cost
Answer: the cost of an asset that is subject to depreciation


●● Depreciation