Name: Score:
105 Multiple choice questions
Definition 1 of 105
1. Analyze business transactions
2. Journalize the transactions
3. Post to ledger accounts
4. Prepare a trial balance
5. Journalize and post adjusting entries
6. Prepare an adjusted trial balance
7. Prepare financial statements
8. Journalize and post closing entries
9. Prepare a post-closing trial balance
Accounting Cycle Steps
Accrual Basis Accounting
Accounting
FastForward 4 steps
Definition 2 of 105
the buyer pays shipping costs and accepts ownership of goods when the seller transfers goods
to the carrier
Periodic inventory system
FOB shipping point
Fob destination
Last-in, first-out (lifo)
,Definition 3 of 105
a list of all ledger accounts and has an identification number assigned to each account
The Chart of accounts
The general ledger
Source documents
Assets
Definition 4 of 105
Requires documentation and verification of internal controls and emphasizes effective internal
controls.
Auditors
Accounting
Internal Users
Sarbanes-Oxley Act or SOX
Definition 5 of 105
Financial statements covering periods of less than one year; usually based on one-, three-, or six-
month periods.
managerial accounting
interim financial statements
source documents
financial accounting
,Definition 6 of 105
a set of accounting standards that is used in the preparation of financial statements
Financial accounting
Generally accepted accounting principles (GAAP)
Revenue recognition principle
Securities and exchange commission (sec)
Definition 7 of 105
States that A company records the expense it incurred to generate the revenue reported. An
example is rent costs of office space.
Revenue Recognition Principle
Expense Recognition Principle
Going Concern Assumption
Full Disclosure Principle
Definition 8 of 105
Purchasing managers, production manager,
distribution manager,
marketing managers,
service managers,'
research and development managers.
Internal Users examples
Liabilities
External transactions
Accounting
, Definition 9 of 105
transferring information from a journal entry to a ledger account
journalizing
posting
current liabilities
general ledger
Definition 10 of 105
products that a company owns and intends to sell
Inventory Turnover
Prepaid Expenses
Merchandise Inventory
Cost Of Goods Sold
Definition 11 of 105
(Net Sales - Cost of Goods Sold) / Net Sales
Gross Margin Ratio
Profit Margin
Debt Ratio
Acid Test Ratio
105 Multiple choice questions
Definition 1 of 105
1. Analyze business transactions
2. Journalize the transactions
3. Post to ledger accounts
4. Prepare a trial balance
5. Journalize and post adjusting entries
6. Prepare an adjusted trial balance
7. Prepare financial statements
8. Journalize and post closing entries
9. Prepare a post-closing trial balance
Accounting Cycle Steps
Accrual Basis Accounting
Accounting
FastForward 4 steps
Definition 2 of 105
the buyer pays shipping costs and accepts ownership of goods when the seller transfers goods
to the carrier
Periodic inventory system
FOB shipping point
Fob destination
Last-in, first-out (lifo)
,Definition 3 of 105
a list of all ledger accounts and has an identification number assigned to each account
The Chart of accounts
The general ledger
Source documents
Assets
Definition 4 of 105
Requires documentation and verification of internal controls and emphasizes effective internal
controls.
Auditors
Accounting
Internal Users
Sarbanes-Oxley Act or SOX
Definition 5 of 105
Financial statements covering periods of less than one year; usually based on one-, three-, or six-
month periods.
managerial accounting
interim financial statements
source documents
financial accounting
,Definition 6 of 105
a set of accounting standards that is used in the preparation of financial statements
Financial accounting
Generally accepted accounting principles (GAAP)
Revenue recognition principle
Securities and exchange commission (sec)
Definition 7 of 105
States that A company records the expense it incurred to generate the revenue reported. An
example is rent costs of office space.
Revenue Recognition Principle
Expense Recognition Principle
Going Concern Assumption
Full Disclosure Principle
Definition 8 of 105
Purchasing managers, production manager,
distribution manager,
marketing managers,
service managers,'
research and development managers.
Internal Users examples
Liabilities
External transactions
Accounting
, Definition 9 of 105
transferring information from a journal entry to a ledger account
journalizing
posting
current liabilities
general ledger
Definition 10 of 105
products that a company owns and intends to sell
Inventory Turnover
Prepaid Expenses
Merchandise Inventory
Cost Of Goods Sold
Definition 11 of 105
(Net Sales - Cost of Goods Sold) / Net Sales
Gross Margin Ratio
Profit Margin
Debt Ratio
Acid Test Ratio
