Question

1.

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing

Group of answer choices

the Income Statement.

the Balance Sheet.

the Statement of Cash Flows.

cannot be determined.

2.

The process of initially recording a business transaction is called

Group of answer choices

trial balancing

posting

journalizing

balancing

3.

Which of the following entries records the payment of rent for the current month?

Group of answer choices

Cash, debit; Rent Expense, credit

Rent Expense, debit; Cash, credit

Rent Expense, debit; Accounts Receivable, credit

Accounts Payable, debit; Rent Expense, credit

4.

When amounts of a transaction are entered on the left side of an account, they are said to be

Group of answer choices

credited

summarized

totaled

debited

5.

On the chart of accounts, the balance sheet accounts are normally listed in the following order

Group of answer choices

liabilities, assets, owner’s equity

assets, liabilities, owner’s equity

owner’s equity, assets, liabilities

assets, owner’s equity, liabilities

Answer 1

1

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the Income Statement.

Option A is correct

2

The process of initially recording a business transaction is called journalizing

Option C is correct

3

The payment of rent for the current month is recorded as:

Rent Expense, debit; Cash, credit

Option B is correct

4

When transaction are entered on the left side of an account, they are said to be debited

Option D is correct

5

On the chart of accounts, the balance sheet accounts are normally listed in the following order assets, liabilities, owner’s equity

Option B is correct