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

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