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Gr. 10 - Unit 4.2 - Accounting Review Flashcards | StudBud
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Gr. 10 - Unit 4.2 - Accounting Review
Gr. 10 - Unit 4.2 - Accounting Review
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1
Financial accounting data is reported in...
financial diaries
financial booklets
financial statements
financial ledgers
2
Some companies must provide a publication every year that describes operations and financials called a(n):
Annual review
None of the options are correct
Annual report
Year in review
3
The most liquid asset of a company is:
Supplies
Accounts Receivable
Cash
Truck
4
All of the following express the fundamental accounting equation except for:
Liabilities = Assets + Owner's Equity
Owner's Equity = Assets - Liabilities
Assets = Liabilities + Owner's Equity
5
Which type of company MUST issue an annual report?
Public company
Private company
6
Big money bonus - the CANADIAN designation of CPA stands for:
Chartered Professional Accountant
Certified Professional Accountant
Chartered Public Accountant
Certified Public Accountant
7
Shows the financial position of a business.
Balance Sheet
Income Statement
8
A(n) _________ is like a "snapshot", while a(n)_________ is like a "movie".
Income Statement, Balance Sheet
Balance Sheet, Income Statement
9
Accounting is a complex profession that requires many years of study.
True
False
10
Big money bonus: Are these assets listed in order of liquidity? Cash, Supplies, Accounts Receivable, Land, Building
No
Yes
11
Accounts payable can be best described as:
Money that an owner invests into their business
Money that a business owes to a supplier
None are correct
Money owed to a business from a customer
12
Shows the profitability of a business.
Income Statement
Balance Sheet
13
Dollar signs are required on all amounts reported in financial statements.
True
False
14
The main heading of a financial statement follows the format:
WHEN, WHAT, WHO
WHO, WHEN, WHAT
WHO, WHAT, WHEN
WHAT, WHO, WHEN
15
Big money bonus: The correct formula for the break-even point is:
BE = VC / (P - FC)
BE = FC / (VC - P)
BE = FC / (P - VC)
No correct formula
16
Big money bonus: Effective January 1, 2011, GAAP rules were replaced by IFRS rules. IFRS stands for:
Integrated Formal Reporting Standards
International Financial Reporting Standards
International Formal Reporting Standards
Integrated Financial Reporting Systems
17
When a business purchases ‘on credit’ (buy now, pay later) it is considered:
Accounts receivable
Account payable
Mortgage payable
18
The financial portion of the business that actually belongs to the owner:
Revenues
Liabilities
Assets
Owner's Equity
19
Costs directly related to the sales volume of a business:
Variable costs
Fixed costs
Sunk costs
Opportunity costs
20
Things of value that are OWNED are called:
Assets
Liabilities
Revenues
Owner's Equity
21
All of the following accounts are assets, except for:
Truck
Accounts receivable
M. Jordan, Capital
Supplies
22
Double-underlines are used only under final totals on a financial statement.
True
False
23
A hair salon has $7500 worth of assets and an owner’s equity in her business of $5000. Liabilities = ?
7,000
- 2,500
2,500
12,500
24
Amount of money left to cover your operating expenses (Revenue - COGS)
Net Income
Cost of Goods Sold
Revenues
Gross Profit
25
Big money bonus - On an income statement, the expenses should be listed...
alphabetically from A-Z
in order of liquidity
in any order - it doesn't matter what order they are in
from lowest to highest expense amount
26
A business will experience a net loss when:
When Revenue > Expenses
When Revenue = Expenses
When Revenue < Expenses
27
Big money bonus: Shareholder's equity is a term used by a:
Partnership
Corporation
Sole proprietorship
28
Which of the following is not a financial statement?
Income Statement
Statement of Retained Earnings
Balance Sheet
General Journal
29
Costs associated with a business that must be paid regardless of how much is sold:
Fixed costs
Opportunity costs
Sunk costs
Variable costs
30
In general terms, a business will break-even when:
When Revenues = Expenses
When Revenues < Expenses
When Revenues > Expenses
31
Accounting is the recording of _____________.
budgets
transactions
dates
purchases
32
Accounts receivable can be best described as:
Money that an owner invests into their business
None are correct
Money owed to a business from a customer
Money that a business owes to a supplier
33
Accounting also includes...
analyzing
all of the above
summarizing
reporting
34
Big money bonus: Which type of business ownership MUST follow IFRS rules of accounting?
Private companies
Public companies
35
Big money bonus - the AMERICAN designation of CPA stands for:
Chartered Public Accountant
Certified Professional Accountant
Certified Public Accountant
Chartered Professional Accountant
36
A balance sheet serves to show a company's profit.
True
False
37
Previously, accounting was regulated by a set of rules called GAAPs - which stands for:
Governed Applications for Accounting Procedures
Generally Accepted Accounting Principles
Governed Applications for Accounting Processes
Generally Accepted Accounting Procedures
38
All of the following are examples of fixed costs except for:
Rent
Employee payroll
Delivery expense
Electricity expense
39
Beginning inventory = $25,000; Purchases for the year = $7,000; Ending inventory = $10,000 so, COGS = ?
None are correct
$8,000
$28,000
$22,000
40
Money made from the sale of goods/services:
Revenues
Cost of Goods Sold
Net Income
Gross Profit
