Questions from College Accounting

Q: Name the five types of financial statement classifications for which it is

Name the five types of financial statement classifications for which it is ordinarily desirable to keep separate accounts.

Q: Where the first formal accounting record of a business transaction is usually

Where the first formal accounting record of a business transaction is usually made?

Q: Describe the four steps required to journalize a business transaction in a

Describe the four steps required to journalize a business transaction in a general journal.

Q: In what order are the accounts customarily placed in the ledger

In what order are the accounts customarily placed in the ledger

Q: Explain the primary advantage of a general ledger account.

Explain the primary advantage of a general ledger account.

Q: What are the main functions of an accounting clerk?

What are the main functions of an accounting clerk?

Q: Explain the revenue recognition principle.

Explain the revenue recognition principle.

Q: Explain the expense recognition principle.

Explain the expense recognition principle.

Q: Which inventory method always follows the actual physical flow of merchandise?

Which inventory method always follows the actual physical flow of merchandise?

Q: Explain the historical cost principle.

Explain the historical cost principle.