Preparing Financial Statements: Help and Review Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Why would employees be interested in the company's financial status?

Question 2 2. Which of the following is an example of a nominal account?

Question 3 3. What does REID stand for in closing entries process?

Question 4 4. The method of accounting that recognizes revenue when it is earned and expenses when they are incurred is called:

Question 5 5. Which of the following is an example of a temporary account?

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Question 6 6. Which of the following is NOT a characteristic of accrual basis accounting?

Question 7 7. What method of accounting reports revenue when it is earned and expenses when they are incurred regardless of when revenue is received or expenses paid?

Question 8 8. The goal of the post-closing trial balance is to make sure that the sum of all debits equals the sum of all _____.

Question 9 9. Before you can complete the adjusted trial balance, you first have to create the _____.

Question 10 10. Which of the following is one of the most common forms of accrued revenues?

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Question 11 11. Money earned in one accounting period but not received until another is called _____.

Question 12 12. Account adjustments are a result of _____.

Question 13 13. Which of the following is one of the most common forms of accrued expenses?

Question 14 14. Which temporary account is the last one to be closed, that deals directly with the return that investors receive on their investments?

Question 15 15. Which of the following is one of the reports that are part of the Financial Statements?

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Question 16 16. On which financial statement are expenses reported?

Question 17 17. What is the main difference between real accounts and nominal accounts?

Question 18 18. Which accounting method is best for keeping track of cash inflows and cash outflows?

Question 19 19. Which of the following entities established the time period principle?

Question 20 20. A report that lists all the accounts a company has and their balances after adjustments have been made is called the _____.

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Question 21 21. Which of the following is NOT an example of a real account?

Question 22 22. Some company accounts need to be _____ in order to meet the requirements of the accrual basis accounting method.

Question 23 23. What is the biggest difference between cash basis accounting and accrual basis accounting?

Question 24 24. A majority investor in ABC Motors wants to see how much money the company is reinvesting in itself. In which financial statement will the investor find this information?

Question 25 25. Accounts whose balances are carried over from one accounting period to the next are called:

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Question 26 26. _____accounts are accounts that once opened will always be a part of a company's chart of accounts.

Question 27 27. What account is created just to be used for the closing entries?

Question 28 28. Which principle recognizes revenue when it is earned regardless of how cash flows?

Question 29 29. Why doesn't the Balance Sheet utilize all of a company's accounts that are listed on the Adjusted Trial Balance?

Question 30 30. An account that once opened will always be a part of a company's books is called a(n) _____ account.

Preparing Financial Statements: Help and Review Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Financial Accounting: Help and Review  /  Business Courses
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