One-Liner MCQs

Accounting One-liner

Revenue is recognized when it is earned, regardless of cash receipt — When earned
Double-entry bookkeeping affects how many accounts per transaction — Two
Balance sheet reflects the financial position on a particular date — Specific date
Depreciation accounts for which financial effect — Decrease in asset value
Outstanding expenses are classified under which section in accounts — Liabilities
Ledger serves which function in accounting — Summarizing journal entries
Capital introduced by an owner is categorized as — Equity
Salaries paid in advance are reported as — Current asset
Trial balance confirms which aspect of accounts — Debits equal credits
Accrued income is shown as which type of item — Asset

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