
Accounting
Quiz by Pamela Falls
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3 questions
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- Q1What is the purpose of a balance sheet?To analyze a company's profitability over timeTo track the cash flow of a companyTo provide a snapshot of a company's financial position at a specific point in timeTo calculate a company's revenue and expenses30s
- Q2What is the purpose of the trial balance?To calculate the net income of a companyTo present a summary of a company's assets and liabilitiesTo ensure that debits equal credits in a company's accounting recordsTo provide information about a company's cash inflows and outflows30s
- Q3What is the difference between accounts receivable and accounts payable?Accounts receivable represents a company's financial assets, while accounts payable represents its financial liabilitiesAccounts receivable represents money received in advance by a company, while accounts payable represents money owed in advance by a companyAccounts receivable represents money owed to a company by its customers, while accounts payable represents money owed by a company to its suppliersAccounts receivable represents money owed by a company to its suppliers, while accounts payable represents money owed to a company by its customers30s