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Accounting CAT 1 T/F
Accounting CAT II
Accounting CAT III
Accounting CAT IV
Accounting CAT V
100
What is involvement of economic events between the company and some other enterprise or party
What is External transactions
100
It is useful for providing a record of transactions, disclosing in one place the complete effect of a transaction, locate and prevent errors
What is journal entry?
100
Decreases liabilities and increases assets.
What is debit?
100
Buildings, Machinery, and Land are assets considered as
What is Property, Plant, & Equipment?
100
An account balance on the side where an increase in the account is recorded
What is a normal balance?
200
Balances when the creditor and ownership claims against the business equal the assets
What is the basic accounting equation?
200
It is the basis of the accounting systems worldwide.
What is the 'Double-entry accounting system'?
200
The financial statement is used to record revenues and expenses
What is the Income Statement?
200
Payable accounts are generally classified on the balance sheet as
What is current liabilities and long-term liabilities
200
A list of accounts and their balances at a given time.
What is Trial Balance?
300
These can provide evidence that a transaction has occurred
What is business documents?
300
Accountants refer to this as an economic event.
What is a transaction?
300
This accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments.
What is the Going concern assumption?
300
It is the average time that is required to go from cash to cash in producing revenue
What is the operating cycle?
300
A list of accounts and the account numbers that identify their location in the ledger.
What is the Chart of Accounts?
400
It occurs when there is a prepayment for services but services have not been performed and an adjusting entry is required when services are performed.
What is Unearned Revenue
400
This sequence includes identification, recording, and communication.
What is accounting process?
400
The life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared.
What is time period assumption?
400
This is used to evaluate a company's relationship between current assets and current liabilities.
What is the liquidity ratio?
400
A journal entry that involves three or more accounts.
What is a Compound entry?
500
The cost of a depreciable asset less the accumulated depreciation reflects
What is the book value of the asset
500
Recording the sale of store equipment, the purchase of a new computer, or the payment of income taxes can be quantified into dollars as cents as
What is an accounting transaction?
500
Dictates that revenue should be recognized in the accounting period in which the performance obligation is satisfied.
What is the 'Revenue recognition principle'?
500
This report contains all asset, liability, and owner's equity accounts.
What is balance sheet?
500
The procedure of transferring journal entries to the ledger accounts.
What is Posting?