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Accounting
Accounting
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Chapter 3 - Vocab and Understanding
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Which is a direct representation of the Accounting Equation?
A + L = OE
OE = L + A
A = L + OE
L = A + OE
2
What is an Entrepreneur?
An Accounting Manager
A Corporation
Someone who starts their own business
A CFO
3
What is a Business Transaction?
An investment in the business
money owed to a creditor
cash exchanging hands
An economic event involving the accounting equation
4
The money a business makes from operations is known as:
Revenue
Expense
Capital
Asset
5
When a business buys something "On Account" it is a....
Liability
Asset
Equipment
Form of Equity
6
The thought that a company will survive indefinitely is known as...
going concern
Accounting Systems
Free Enterprise
GAAP
7
Money that a business supplies is called...
Revenue
Loss
Capital
Going Concern
8
Revenue generated by the business affects which two accounts?
assets, liabilites
assets, owners equity
cash, assets
cash, accounts payable
9
The set of rules established for accountants to follow is known as:
Generally Accepted Accounting Principles
Accounting Rules
Accounting Ideology
International Accounting Federation
10
If ABC Inc. buys a car for $7,000 but borrows $5,000, how much of the car do they actually own?
7000
5000
2000
12000
11
If you borrow money to buy a bike for $600 which two counts are affected?
Bike, Assets
Bike, Accounts Payable
Bike, Owners Equity
Bike, Creditors
12
The person or business you borrow money from is known as a....
Capital
Cool Guy
Creditor
Financial Claim
13
What is one advantage of a Corporation?
Easy to raise funds
Short Life Span
Double Taxation
Unlimited Liability
14
Assets total 6,000 and Owners Equity Totals 3,200. What is the Liability Balance?
3200
9200
2800
2500
15
A company purchases iphones for $10,000 on account. Which two accounts are affected and how?
phones up, owners equity up
phones up, cash down
cash up, owners equity down
phones up, accounts payable up
16
Company B pays back the money it owes to the bank. Which two accounts are affected?
cash, owners equity
cash, accounts payable
cash, accounts receivable
accounts payable, owners equity
17
An Accounting Period is....
Jan 1 - Dec 31st
each month
Each week
A period of time that best fits the business
18
Classify This Account: Accounts Receivable
Liability
Retained Earnings
Asset
Owners Equity
19
Financial Reporting that is used internally by the business is....
Financial Accounting
Business Entities
Managerial Accounting
Internal Controls
20
Which is an example of a Manufacturing Business?
CVS
Target
Telsa
King Kullen
