Future Business Leaders of America (FBLA) Accounting Practice Test

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Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

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What financial tool provides a monthly statement of transactions in a business?

General Ledger
Work Sheet
Bank Statement
Income Statement

The correct answer is: Bank Statement

A bank statement is indeed the financial tool that provides a monthly statement of transactions in a business. It details all the transactions that have occurred in a business's bank account over the course of the month, including deposits, withdrawals, fees, and interest earned. This document is critical for businesses to reconcile their financial records with the bank's records, ensuring accuracy in financial reporting. The general ledger, while essential for tracking all transactions systematically in a business's accounting system, does not provide a monthly summary on its own; it includes detailed records of every transaction throughout the accounting period. A work sheet, on the other hand, is used during the accounting process for organizing adjustments and ensuring that data is correctly processed and balanced, but it does not serve as a statement of transaction activities. Lastly, an income statement summarizes revenues and expenses over a period but does not detail individual transactions like a bank statement does.