Accounting Transactions and Financial Statements Quiz

Recording an asset (furniture) and liability (accounts payable) without immediate cash payment.

Summarizes the company's financial performance, showing revenues, expenses, and net income.

Short-term debts owed by the company to its creditors.

Summarizes a company's assets, liabilities, and equity at a specific date.

An obligation of a business representing amounts owed to creditors.

Debts or obligations due after one year from the date of the balance sheet.

Details changes in a company's retained earnings over a specific accounting period.

Basic principle stating that a company's resources equal its creditors' claims and owner's equity.

Method of recording financial transactions where every entry has an equal and opposite effect in at least two different accounts.

A listing of all the general ledger accounts contained in the ledger of a business, used to ensure debits equal credits.

Allocation of the cost of an asset over its useful life.

Reports a company's cash inflows and outflows during a specific accounting period.

Fundamental principle expressing the relationship between a company's assets, liabilities, and owner's equity.

Documents presenting financial data, providing insights into the company's financial health.

A type of account used to record offsets to the main account, such as depreciation against the asset account.

Account that offsets the value of an asset account, representing reductions in that asset's value over time.