accounting
What is the primary goal of accounting?
To provide financial information for decision-making
Which financial statement primarily shows a company’s profitability?
Income Statement
What is double-entry accounting?
An accounting system where every transaction affects at least two accounts
What does GAAP stand for?
Generally Accepted Accounting Principles
Which type of account is liabilities classified under?
Balance sheet accounts
Which principle requires that expenses be recorded in the same period as the revenues they help generate?
Matching Principle
What is the function of the trial balance?
To ensure that debits and credits balance
What type of account is 'Accounts Receivable'?
Asset
What does the accounting equation represent?
Assets = Liabilities + Equity
What is the main purpose of a ledger in accounting?
To summarize all financial transactions by account