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Accounting

Quiz by Pamela Falls

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3 questions
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  • Q1
    What is the purpose of a balance sheet?
    To analyze a company's profitability over time
    To track the cash flow of a company
    To provide a snapshot of a company's financial position at a specific point in time
    To calculate a company's revenue and expenses
    30s
  • Q2
    What is the purpose of the trial balance?
    To calculate the net income of a company
    To present a summary of a company's assets and liabilities
    To ensure that debits equal credits in a company's accounting records
    To provide information about a company's cash inflows and outflows
    30s
  • Q3
    What is the difference between accounts receivable and accounts payable?
    Accounts receivable represents a company's financial assets, while accounts payable represents its financial liabilities
    Accounts receivable represents money received in advance by a company, while accounts payable represents money owed in advance by a company
    Accounts receivable represents money owed to a company by its customers, while accounts payable represents money owed by a company to its suppliers
    Accounts receivable represents money owed by a company to its suppliers, while accounts payable represents money owed to a company by its customers
    30s

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