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After a correct analysis of business transaction, it is first recorded in a
A journal is also known as
Business transactions are recorded in journal in
Transactions relating to a single item are classified and grouped by posting them from journal to
The transfer of entries from journal to ledger accounts is typically known as
A journal is prepared on the concept of
starts with the analysis of business transaction.
system of accounting, each transaction affects at least
The left hand side of a ledger account is known as
hand side of a ledger account is known as credit side.
is a list of all account titles and their balances and is prepared at the end of certain period.
trial balance can be directly used to prepare some financial statements such as income statements and balance sheet.
The left hand side of a T-account is known as
side and the right hand side is known as
The collection or group of accounts maintained by a business is collectively known as
A trial balance that is prepared after taking into account all the adjusting entries is known as
A financial statement that shows the operating results of a business by comparing revenues and expenses relating to a particular period is known as
The income statement shows a
if revenues earned exceed expenses incurred during the period.
The undistributed portion of net income earned by a company is known as
A financial statement that shows the changes in the amount of retained earnings of a company is known as
The amount of retained earnings increases when company earns
and decreases when company declares
Retained earnings at the end of a period = Retained earnings at the beginning of the period +
Retained earnings at the end of the period = Retained earnings at the beginning of the period -
- dividends declared.
is a financial statement that helps in evaluating the financial position of a business enterprize.
are the obligations of a business to parties other than owner(s).
In a sole proprietorship form of business,
is the obligation of a business to its owner.
The term owner's equity is often replaced by the term
equity in a corporate form of business (i.e., public and private limited companies).
For balance sheet purpose, the assets are usually classified into
Cash and cash equivalents, accounts receivable, prepaid expenses, and inventories are examples of
The assets that continue providing benefit for a long period of time (usually more than one year) are known as
Building, plant and machinery, vehicles, long term investments and intangible assets like goodwill, patent, copy copyrights are examples of
entries are jounrnal entries that close all temporary accounts at the end of an accounting period.
Revenue, expense, dividend, and income summary accounts are
accounts are accounts that continue to exist after current accounting period.
All balance sheet accounts are examples of
In a corporate form of business, all temporary accounts are closed to
The dividend is not a business expense, its balance is therefore not transferred to the
The income summary account is closed to retained earnings account by debiting
account and crediting
The dividends account is closed to retained earnings account by debiting
account and crediting
The preparation of post-closing trial balance is the
step of accounting cycle.
The post-closing trial balance consists of only
accounts because all temporary accounts are closed by making