stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Accounting Exam 1 Flashcards | StudBud
Explore
/
Accounting Exam 1
What is a Corporation?
What are Sales?
Accounting Exam 1
40 terms
·
StudBud Administration
·
2 plays
Imported from external platform
Flashcards
40 cards
F
Practice quiz
P
Host live
L
Questions
40
Answers
1
What are Sales?
The total revenue earned from selling goods or services
The cost of producing goods or services
The company’s total assets
The amount of money owed to suppliers
2
What is a Corporation?
legal entity separate from its owners, with its own rights and liabilities
A business owned by a single individual with unlimited liability
A non-profit organization focused solely on charitable activities
A partnership where all members share responsibilities equally
3
What is an Income Statement?
A report showing a company’s assets and liabilities
A record of stockholder equity changes
A summary of cash flow activities
A document detailing revenues and expenses over a period
4
Which of the following is an example of a long-term liability?
Wages Payable
Accounts Payable
Short-Term Loans
Mortgage Payable
5
What are Financial Statements?
Reports that summarize a company’s financial performance and position
Documents outlining the company's marketing strategy
Plans for future business expansion
Records of employee salaries and benefits
6
Who sets Generally Accepted Accounting Principles (GAAP)?
American Institute of Certified Public Accountants (AICPA)
International Accounting Standards Board (IASB)
Securities and Exchange Commission (SEC)
Financial Accounting Standards Board (FASB)
7
What is a Balance Sheet?
A snapshot of assets, liabilities, and equity
A report of revenues and expenses
A summary of cash flow
An outline of company goals
8
What are the Statement of Cash Flows?
A document detailing changes in owner’s equity
A report showing cash inflows and outflows over a period
A record of revenue and expenses
A summary of a company’s assets and liabilities
9
What is the Statement of Owner's Equity?
A summary of the company’s revenues and expenses
A document listing a company’s assets and liabilities
A report detailing a company's cash inflows and outflows
A financial statement showing changes in owner’s equity over a period
10
Which of the following is considered a non-current (long-term) asset?
Property, Plant, and Equipment
Cash
Accounts Receivable
Inventory
11
The principle that financial statements should reflect the activities and results of a specific period is Time Concept
False
True
12
What does the Statement of Cash Flows report?
The balance of assets, liabilities, and equity at a specific date
Cash inflows and outflows from operating, investing and financing activity
The changes in owner’s equity over a period
The company’s revenues and expenses over a period
13
Any event that affects the financial position of a business and is recorded in its accounting system is a?
Liability
Business concepts
Assist
Business Transaction
14
What are Fees Earned?
The costs associated with providing services to clients
The total amount of revenue received from providing services to customers
The expenses incurred in the process of earning revenue
The amount of money spent on marketing and advertising
15
What is a proprietorship?
A business owned by multiple individuals with shared responsibilities
A business structure where one person owns and operates the business
A type of partnership where partners share profits equally
A corporation with limited liability for its owners
16
what is the accounting equation
assets= liabilities + owners equity
Assets = Revenue - Expenses
Assets + Liabilities = Equity
17
What are Expenses?
Costs incurred in the process of earning revenue
Payments received from customers
Assets owned by the company
Income generated from selling goods or services
18
What does GAAP stand for?
Generally Applied Accounting Policies
Government Accounting and Auditing Procedures
General Accounting and Auditing Practices
Generally Accepted Accounting Principles
19
Current liabilities are due within one year, while long-term liabilities are due after one year
False
True
20
What is Accounts Payable?
The cash available for immediate use
Money owed by a business to its suppliers
The value of a company’s investments
Payments a business expects to receive from customers
21
What is Net Income?
Cash received from sales
The value of goods sold
Total assets minus total liabilities
Total revenue minus total expenses
22
How is Owner’s Equity calculated?
Liabilities minus Assets
Assets divided by Liabilities
Assets plus Liabilities
Assets minus Liabilities
23
What is owner's equity
The amount of money a company owes to its creditors
The total value of a company's assets minus its liabilities
The total revenue generated by the company
The value of goods and services a company has on hand
24
What is a liability?
A debt or obligation that a business owes to others
A type of revenue earned by the business
A resource owned by a bus that is expected to bring future economic benefit
The owner's share of the business's assets
25
What is an indirect cost?
A cost that varies with production volume
A cost that is directly related to the production of a specific product
A cost that changes based on market conditions
A cost that cannot be directly traced to a specific product or department
26
A long-term resource used in the operations of a business, such as machinery or buildings are
Fixed Assets
fixed Income
libility
Income
27
Payments a business expects to receive from customers for goods or services already provided are accounts recieveable
False
True
28
Which of the following is an example of applying the Time Concept?
Paying an expense when the invoice arrives
Recognizing expenses only when paid
Recording revenue when earned, even if not yet received
Adjusting asset values for market changes
29
What is the Matching Principle?
All financial transactions should be recorded based on the cash basis
Assets should be matched with their corresponding liabilities
Revenues should be recognized when cash is received
Revenues and expenses should be recorded in the same period
30
What does the Statement of Owner’s Equity show?
A snapshot of assets, liabilities, and equity at a specific date
Changes in the owner’s equity over a specific period
Revenue and expenses over a period
The company’s cash inflows and outflows
31
Which of the following is an example of a current asset?
Equipment
Building
Accounts Receivable
Land
32
What is an asset?
A resource owned by a bus that is expected to bring future economic benefit
A debt or obligation of a business
The owner’s claim on the business’s resources
A cost incurred in the process of running a business
33
An asset that is easily converted into cash within one year is a fixed asset
True
False
34
What is Accounts Receivable?
Money owed to a business by its customers
Payments a business needs to make to suppliers
The total revenue earned in a period
The value of a company's equipment
35
Which of the following is an example of a fixed cost?
Utility bills based on usage
Sales commissions
Raw materials used in production
Rent for office space
36
A legal entity that is separate from its owners and has its own rights and responsibilities is a corporation?
False
True
37
What is revenue?
The total amount earned from sales of goods or services
The value of assets owned by the company
The cost of operating a business
The amount owed to creditors
38
Which of the following is an example of a direct cost?
General office supplies
The cost of raw materials used to manufacture a product
Administrative salaries
Depreciation on office equipment
39
process of building up a positive credit history through timely payments and responsible credit use: Credit Accumulation
True
False
40
What is the primary purpose of distinguishing between current and non-current assets?
To record transactions in the correct period
To calculate the company’s profitability
To assess the liquidity and financial health of a business
To determine the value of equity
