BBI20 CH 9 REVIEW

T/F: A financial statement will not help in deciding what businesses to invest in

M/C: Financial statements are studied carefully by all the following except...

M/C: Anything that a company owns has a ______ value

T/F: Accounts Payable-is the $ for which a company has billed customers, but not yet received

T/F: GAAP stands for ‘Generally Accepted Accounting People'

M/C: Define: GAAP

M/C: There are 2 key Financial Documents in accounting, what are they?

M/C: Current liabilities need to be paid in ______

M/C: An accounting computer program will not permit the user to enter a transaction that...

M/C: ____ will help you decide if you should invest in a company.

M/C: ____is the difference between what you own and what you owe also referred to as OE.

M/C: Income is also called...

T/F: Accounting - system used by an organization to keep record ONLY the money that goes out.

M/C: Business owners require ___________ information to make decisions for the business.

T/F: The two key Financial Statements of accounting are income statement and general journal.

T/F: Net worth is also referred to as Owner’s Equity.

M/C: Purpose is to provide ______ information on a regular basics according to GAAPs

T/F: Preparing financial statements is not required by law.

M/C: What is the duration of a fiscal year?

T/F: The actual cost of a business purchase is NOT recorded as the cost in the books

T/F: The finances of the business are kept separate from those of its owner

T/F: Financial accounting and managerial accounting are the two types of accounting.

T/F: Income Statement will show investors Net Income and Loss.

T/F: Equation of Owner’s Equity= assets- revenues

T/F: Income Statement will show Assets over several months

T/F: Balance Sheet Equation is... Assets+Liabilities = Owner's Equity

M/C: Accounting year of an organization or 12 consecutive months

T/F: Income Statement formula... Expenses - Revenues

T/F: Banks & lenders need to know that they will be repaid by a business that owes them money.

M/C: How would you find out your Capital amount (OE)?

M/C: Which is not a GAAP?

M/C: Which isn’t one of the reasons the Gov't would want to see a company’s financial statement