Accounting Cycle: Fill In the Blanks

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on July 21, 2022

We’ve prepared this accounting cycle fill-in-the-blanks quiz to help students test their knowledge. We expect that this test will be most useful for students preparing for exams or interviews.

Answer each question and submit the quiz to receive your results. You can also enter your email address to receive the results in your mailbox. 

Question No. 1

refers to the accounting procedure used to record, classify, summarize and interpret the business transactions.

Question No. 2

The standards which are made to make accounting practice uniform and adaptable are known as .

Question No. 3

Accounting principles should be result-oriented, factual and .

Question No. 4

The assumptions upon which accounting is based are called .

Question No. 5

concept refers that for the purpose of accounting owner and business are two separate entities.

Question No. 6

According to concept, this is assumed that the business will operate for a long period of time.

Question No. 7

Under concept it is assumed that only those transactions which have a monetary value should be recorded in the book of account.

Question No. 8

concept requires that an asset should be recorded on its cost on which it was purchased.

Question No. 9

concept requires that the life of business should be segregated into equal parts.

Question No. 10

concept requires that the revenues of a particular period must match with the expenses of that period.

Frequently Asked Questions

What is an Accounting Cycle?

The Accounting Cycle is recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. The Accounting Cycle typically begins with recording monetary transactions and ends with preparing Financial Statements.

How often does the Accounting Cycle occur?

The steps in the Accounting Cycle typically include the following: recording financial transactions, classifying financial transactions, summarizing financial transactions and lastly, preparing Financial Statements.

How often does the Accounting Cycle occur?

How often does the Accounting Cycle occur?

What are the benefits of using an Accounting Cycle?

The Accounting Cycle provides businesses with a systematic way to record financial transactions and generate Financial Statements. This information can be used to make informed business decisions, such as pricing products, allocating resources, and assessing financial stability. Additionally, the Accounting Cycle helps businesses stay compliant with financial regulations.

What are some joint Financial Statements?

The most common Financial Statements are balance sheets, income statements, and Cash Flow statements. The balance sheet shows a company’s assets, liabilities, and equity on a specific date. The income statement indicates a company’s revenues and expenses over a particular period. The Cash Flow statement shows how the company’s Cash Flow has changed over time. Other Financial Statements that are occasionally used include the statement of changes in equity and the statement of comprehensive income.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.