I am the only financial statement prepared on
cash basis. What am I? A Statement of Cash Flow? An Income Statement? Or a
Statement of Equity Changes? The answer is a Statement of Cash Flow! I am the reward for labour expensed
in the profit or loss account! What am I? Salaries and Wages?
An Accounts Payable? Or Taxes? The answer is Salaries and Wages! I am the point where no profit or loss
is made! What am I? A break-even point? A net point? Or a zero point? The answer is a break-even point! I'm a ledger! What type of book am i? A subsidiary
ledger? A journal ledger? Or a prime ledger? The answer is a prime ledger! When I'm applying the prudence concept, what
am I doing? Recognizing all losses? Recognizing realized losses but not recognizing
profits? Or anticipating losses? The answer is anticipating losses! A credit note is sent to
whom? A creditor or a debtor? The answer is a debtor! The accounting cycle begins by recording which
of the following in the form of journal entries? Financial information? Business
contracts? Or business transactions? The answer is business transactions! Once journal entries are
recorded, they can be posted to? General journals? Ledger
accounts? Or expense reports? The answer is Ledger accounts! The accrual basis of accounting records revenues
when they are: Collected? Earned? Or Contracted? The answer is earned! Net income equals: Total revenues
minus cost of goods sold? Total revenues minus total expenses? Or
revenues minus expenses plus income taxes? The answer is total revenues minus total expenses!
