Financial Accounting MCQs

payable is the term that matches the description: an amount the entity owes to another party

expense refers to a cost consumed in earning revenue

journal is the term that matches the description: the book of original entry

cash flow statement refers to a statement of cash inflows and outflows by activity

revenue refers to income arising from ordinary activities

bank reconciliation refers to a comparison of cash-book and bank-statement balances

receivable refers to an amount owed to the entity

going concern refers to the assumption that an entity will continue operating for the foreseeable future

expense is the term that matches the description: a cost consumed in earning revenue

asset is the term that matches the description: a resource controlled by an entity that is expected to provide future benefit

capital expenditure is the term that matches the description: spending that creates or improves a long-term asset

income statement refers to a statement of revenue, expenses and profit over a period