Colin Was Working on His Budget

question 51

Multiple Choice

Colin was working on his budget. He had compiled his receipts, his employee's time sheets, the invoices he has sent to his suppliers and his bills that he owed others. He was now ready to assess his

• A) assets.
• B) income statement.
• C) external audit.
• D) fixed budget.
• E) liabilities.

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Definitions:

Capital Account

A capital account is an account on a company's balance sheet that represents the equity investment of owners and shareholders.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent equity account.

General Ledger

A thorough collection of financial records that documents every financial transaction undertaken by a business.

Adjustments Credit Column

The part of a financial or accounting document where adjustments are made to credits, increasing the value of certain accounts.