Examination for FUNDAMENTAL ACCoUNTING Part I Fill-In-The-Blanks(10"2=20 points) 1.A is a collection of all accounts used by a business 2. All cash payments by check are recorded in thejournal 3. Revenue and expense accounts are called because they are opened and closed every reporting period. The and are also accounts 4 Liabilities are probable future payments of that an entity is resently obligated to make as a result of past transactions or events 5 A expenditure benefits only the cument period and should be charged to expenses of the current period. A expenditure has a benefit that extends beyond the end of the current period and should be charged to an asset 6 Four closing entries: (1) close balances in temporary accounts to income summary,(2)close balances in temporary accounts, (3)close owners capital, and (4)close account to owners' capital 7 An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance reported on the bank statement is called a bank 8 series of annual payments at equal time intervals is called an 9 The application of analytical tools, such as determining liquidity, profitability, and solvency ratio, to general-purpose fnancial state ments and related data for making business decisions is called financial statement 10 Data from one or more direct competitors of the company under analysis are usually preferred for developing for comparisons Part II: True/False Questions(10*1.5=15 points 1. External transactions are exchanges between an organization and some other person or organizationExamination for FUNDAMENTAL ACCOUNTING Part I: Fill-In-The-Blanks (10*2=20 points) 1. A _______ is a collection of all accounts used by a business. 2. All cash payments by check are recorded in the ____________ journal. 3. Revenue and expense accounts are called ____________ because they are opened and closed every reporting period. The ____________ and ____________ are also ____________ accounts. 4 Liabilities are probable future payments of _________ or __________ that an entity is presently obligated to make as a result of past transactions or events. . 5 A _______ expenditure benefits only the current period and should be charged to expenses of the current period. A _____ expenditure has a benefit that extends beyond the end of the current period and should be charged to an asset. 6 Four closing entries: (1) close _______ balances in temporary accounts to income summary, (2) close _____ balances in temporary accounts, (3) close _________ to owners’ capital, and (4) close ____________account to owners’ capital. 7 An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance reported on the bank statement is called a bank __________. 8 A series of annual payments at equal time intervals is called an __________. 9 The application of analytical tools, such as determining liquidity, profitability, and solvency ratio, to general-purpose financial statements and related data for making business decisions is called financial statement __________. 10 Data from one or more direct competitors of the company under analysis are usually preferred for developing ________ for comparisons. Part II: True/False Questions (10*1.5= 15 points) 1. External transactions are exchanges between an organization and some other person or organization