Accounting igcse
What is the purpose of a trial balance in accounting?
To ensure that total debits equal total credits
Which of the following is an example of a current asset?
Inventory
What is the accounting equation?
Assets = Liabilities + Equity
Which of the following financial statements shows a company's profitability?
Income statement
What is the purpose of the double-entry accounting system?
To prevent errors in recording transactions
Which of the following is considered a liability?
Mortgage payable
What is the purpose of adjusting journal entries?
To adjust revenues and expenses for the period
Which of the following is a contra account?
Accumulated depreciation
What is the purpose of a cash flow statement?
To show how a company generates cash and uses it
Which of the following is considered an asset?
Inventory