Accounting Cycle Practice Quiz
11. What is the first step in the accounting cycle?
- Preparing financial statements
- Making adjustments
- Posting transactions to the general ledger
- Reviewing source documents and analyzing transactions
12. True or False: The unadjusted trial balance should be used to create financial statements.
- True
- False
13. What is the name of the form or statement that lists the profit or loss for a company during a specific period?
- The balance sheet
- The trial balance
- The income statement
- The general journal
Accounting Cycle (Part 1) Assessment
14. A schedule that contains all accounts needed to prepare financial statements is known as:
- An Income Statement
- The General Ledger
- A Journal Entry
15. Reorganizing journal entries and grouping them by account is known as:
- File maintenance
- Posting to the ledger
- Balancing the journal
16. A listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger is known as a:
- Chart of Accounts
- Journal Entry
- Financial Statement
17. To find the balance of the account types that increase with a debit (asset and expense accounts), bookkeepers will:
- Subtract total credits from total debits (Debits – Credits)
- Subtract total debits from total credits (Credits – Debits)
18. The accounting cycle starts with the:
- Preparation of adjusting entries
- Preparation of ledger accounts
- Preparation of a trial balance
- Analysis of business transactions
Shuffle Q/A 2
19. After analysis, the business transaction is recorded in the journal in:
- Chronological order
- Random order
20. A form or statement that lists the titles and balances of all ledger accounts at a given date is known as:
- Trial balance
- Statement of retained earnings
- Income statement
- Balance sheet