21. A customer paid in advance for a service. They need to cancel the service. If the business owner wishes to apply that money towards the customer’s next service, the owner would enter that transaction into their accounting software as:
- A Refund
- A Sales Receipt
- A Credit Memo
- An Invoice
22. True or False: In order to complete a Statement of Equity, you will need the net profit from the Income Statement.
- True
- False
23. True or False: Business owners should use the General Ledger to make business decisions.
- True
- False
24. A Balance Sheet has four parts: a heading, assets, liabilities, and ______.
- owner/company name
- total
- gross profit
- equity
25. True or False: Financial reports should be produced before any adjustments have been made.
- True
- False
26. An owner has deposited several payments they’ve received from customers into the business’s bank account. The owner would then enter this transaction in their accounting software as:
- A Bank Feed
- An Invoice
- A Vendor Check Bank Feed
- A Bank Deposit
27. After the Unadjusted Trial Balance is created, the process of going back and updating information is known as:
- Making adjustments
- Making substitutions
- Making changes
- Making corrections
28. A business owner had a piece of equipment serviced and paid for the repair with a check. The owner would then enter the transaction into their accounting software as:
- A Bank Feed
- A bank deposit
- A Vendor Check
- An invoice
Shuffle Q/A 3
29. The document that shows all of the account balances after adjustments have been made is known as:
- The General Journal
- The Unadjusted Trial BalanceÂ
- The Adjusted Trial BalanceÂ
- The General Ledger
30. Becky provided a service to a customer, and they have yet to pay. Which type of journal entry would need to be made?
- A Deferral
- A Tax Adjustment
- A Missing Transaction
- An Accrual