EB 221 - Accounting Final Review Quiz

Accounts for financial obligations owed to suppliers after purchasing products or services on credit?

The total cost of all inventory on hand at any time during the period, including beginning inventory and all purchases?

For a note, monetary incentive to the lender, which justifies loan risk?

Goods or stock of goods which are held for resale at a profit?

Expense account that houses all costs associated with getting a product ready for sale?

Changes in the cash flow of long-term liabilities belongs in which section of the statement of cash flows?

The following equation is associated with which financial statement; Revenue – Expenses = Net Income/(Loss)?

Individuals, associations, or organizations that engage in economic activities and controls specific economic resources?

Periodic “reward” distributed to owner of cash or other assets?

The difference between gross profit and expenses when gross profit is larger?

A debt to a lender with specific repayment terms, which can include principal and interest?

 Business that provides intangible services to customers and does not (generally) have inventory, is a service company?

Represents the cash receipts and cash disbursements as a result of business activity?

A ratio analysis is quantitative?

Any portion of the long-term note due that will be paid in the current period?

An interaction that occurs between a manufacturer and the merchandiser, also called a retailer?

Which of the following is a current asset?

Shows where the cash is coming from?

A way for the potential fraudster to internalize the concept that the fraudulent actions are acceptable?

Cash or other assets that will be converted into cash or consumed within one year?

Business owned by one person, who bears unlimited liability for the enterprise?

A business that earns a profit for the sale of goods & services?

Component of the statement of cash flows which accounts for the cash activities a business uses to produce net income?

Measures how much cash a company has to pay its bills in the coming months; more cash means less financial strain?

A financial report which presents the income, expenses, and resulting net profit or net loss for a given period?

Under accrual accounting, a company does not record revenue as earned until it has provided a product or service?

Component of cash flows which accounts for transactions related to the business raising money from debt or stock?

When small businesses sell multiple products for a lower rate than selling each item individually?

Which of the following is NOT a component of the Fraud Triangle?

Decreases in company value from activities that are “incidental or peripheral” to the primary purpose of the business?

Issuance of notes payable is reflected in which section of statement of cash flows?

Refers to the total cost of all inventory on hand, including beginning inventory and all inventory purchases?

Example of a competitive advantage to employees in an effort to improve job satisfaction and increase employee morale?

Financial accounting uses both financial and nonfinancial information for making decisions within an organization?

An expense that reduces net income but is not associated with a cash flow?

Measures how the company is financing its operations?

Goods or stock of goods which are held for resale at a profit?

An expense reported on the cash flow statement that reduces net income but is not associated with a cash flow?

Assets that can be appraised by value or seen or touched?

An inflow of assets as a result of selling a product or providing a service?

The voluntary association of two or more people who combine their resources to become co-owners of a lawful enterprise?

A customer’s advance payment for a product or service that has yet to be provided by the company?

Which of the following is an example of deferred revenue?

Which of the following is NOT considered inventory for a clothing retailer?

Net sales minus the cost of goods sold?

Measures how well company can meet short term obligations?

The act of intentionally deceiving a person or organization in order to secure some type of benefit

When businesses set costs higher because they have a unique product or brand that no one can compete with?

This occurs when there is a deviation from standard control protocol which leads to a failure in the system?

The amount of time it takes a company to use its cash to provide a product or service and collect payment?

Which of the following is not a component of the accounting equation?

Withholdings that may include those made to an employer-sponsored plan, deducted pre-tax?

A language of business employed to communicate financial information?

What is the hardest asset to control in a company?

Acquiring products for resell from a manufacturer or supplier?

Goods or stock of goods which are held for resale at a profit

The amount earned by the employee before any reductions in pay occurs?

A legal entity organized and operated for a collective, public, or social benefit?

The systems used by an organization to manage risk and diminish the occurrence of fraud?

The number of times the average inventory has been sold or used up during a period?

Term referring to a predetermined amount of cash held on hand to be used to make payments for small purchases?

 When a trusted individual has a financial issue or problem he or she feels can’t be shared?

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered?

Debts of a business that are not due and payable within one year; usually secured with interest accural?

An interaction between a customer and the merchandiser or retailer?

Withholdings that neither the employer nor the employee have control over and are required by law?

The balance sheet is also referred to as the:

Shows what the cash is being used for?

A type of corporation that offers limited liability to its owners but is taxed as a partnership?

Assets that can be expected to converted to cash beyond the normal operating cycle of at least 12 months (>1 year)

Changes in the cash flow of equity belongs in which section of the statement of cash flows?

Equipment sales is reflected in which section of statement of cash flows?

A form of business ownership which combines aspects of partnerships with the limited liability of a corporation?

A financial report illustrating the assets, liabilities, and owner’s equity of a business as of a specific date?

A person who generally works for an outside certified public accountant (CPA) firm or his or her own?

Changes in the cash flow of short-term assets and net profit belongs in which section of the statement of cash flows?

A decrease in assets, other than withdrawals by the owner, which result from efforts to produce revenues?

Changes in the cash flow of long-term assets belongs in which section of the statement of cash flows?

An intangible asset such as the name of a funeral home?

The following equation is associated with which financial statement; Assets = Liability + Equity?

When your prices either match or beat your competitor’s similar products?

Component of cash flows which accounts for transactions related to a business’ investments in long-term assets?

Increases in company value from activities that are “incidental or peripheral” to the primary purpose of the business?

The amount an employee receives and deposits in their bank accounts?

Debts of a business that are generally paid within one year?

Another element, or motivations for a person to commit fraud?

The income statement is also referred to as the:

Of the following answers, which leads to a DECREASE in a company's equity (value)?

The quantity to be purchased which minimizes total costs?

Pricing strategy aims to attract buyers by offering lower prices on goods and services than competitors?

Exchange of cash or other assets in exchange for an ownership interest in the organization?

When a potential fraudster thinks that the internal controls are weak or sees a way to override them?

A financial report showing a firm’s sources of cash as well as its uses of cash?

For a note, refers to the initial borrowed amount, not including interest?

Which of the following is NOT a required component of a financial report?

Measures the average time required to sell inventory?

Deductions not required to be removed from employee pay unless the employee designates reduction of these amounts?

Those assets that cannot be touched or grasped?

An employee whose job is to provide an independent and objective evaluation of the company’s accounting?

Refers to a liability created when a company collects taxes on behalf of employees and customers?