Accounting I Intro Quiz

Rules accountants follow when recording accounting information.

Money invested in a business by its owners or the money provided by banks or investors.

GAAP communicates financial information to people who need to understand financial forms.

The most common form of business organization is the

If a business spends more to operate than it earns from sales it is operating at a

An individual who transforms ideas for products or services into real world businesses.

Corporations often start out as sole proprietorships or partnerships.

In accounting, a business is an entity separate from its owners.

In a free enterprise system, businesses compete for customers.

The accountant prepares reports as though the business will operate indefinitely.

A business is operating at a ____if it earns more money than it spends.

Only businesses that earn a profit will have the economic resources to continue to operate.

A partnership can be owned by more than two individuals.

____summarize information about the financial status of a business.

A business owner must always get permission to operate from the state government.

Business that must get permission from the state to operate.

Designed to collect, document, and report on the financial transactions affecting the business.

Business that produces items to sell to individuals and other businesses.

All types of businesses sell a product.

All businesses set up their accounting systems in the same manner.

Is concerned with preparing reports for internal users.

Basic accounting rules and procedures differ from business to business.

Service businesses are not intended to operate at a profit.

Legal document giving a business the right to operate as a corporation.

A corporation is the easiest to organize.

Advantage of entrepreneurship--any financial gain from operating the business is yours.

An example of an internal user of accounting information is

The ___ is the period of time covered by an accounting report.

Business owners must keep financial records of the business separate from the personal records.

Selling price covers the cost of raw materials needed to make the product-- you make a profit?