Balance Sheet Accounts

question 104

Multiple Choice

Balance sheet accounts

• A) represent amounts accumulated during a specific period of time
• B) are called real accounts
• C) have zero balances after the closing entries have been posted
• D) are equal to assets and liabilities

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Definitions:

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for the effects of transactions not involving cash.

Operating Activities

The business activities directly related to providing services and producing goods, including revenue and expense transactions.

Accrued Liabilities

Expenses that have been incurred but not yet paid, recognized on the balance sheet for accounting purposes.

Operating Activities

Activities directly related to the primary operations of a business, including production, sales, and delivery of services.