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Preparation for exam 3 in business administration #business
Flashcards
16 cards
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Practice quiz
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Questions
16
Answers
1
What is the income statement equation
Assets - Liabilities = Net Income/ Loss
Revenues + Expenses = Net Income/ Loss
Revenues - Expenses = Net Income/ Loss
Assets + Liabilities = Net Income/ Loss
2
If there is $2500 in assets and $800 of liabilities, what is your total equity
2,100
1,700
3,300
2,900
3
What are acceptable financial periods
quarterly
all of the above
monthly
annually
4
Equity is to Ownership as Debt is to
Expenditures
Loan
Asset
Money
5
When is Accrual based accounting recognized
When payments are made
When earned and incurred
When cash is received
When cash is received or paid
6
Which IS NOT considered US Exchanges
NYSE
FTSE
NASDAQ
7
What is the balance sheet equation
A = L + E
A = E-L
A = L-E
E = L + A
8
NASDAQ, NYSE, AMEX are all examples of which financial market
Primary
Secondary
9
In the accounting equation A = L + E, if you borrow money, what two standards are affected
L + E
A + E
A + L
10
It is good to have debt
No
Yes
Sometimes
11
All are types of accounting except
Managerial
Financial
Tax
Firm
12
Which financial ratio shows the financial leverage of a business
Inventory Turnover
Return on Sales
Total Liability to Equity Ratio
Return on Owners' Equity
13
What is considered the most risky investment
Common Stock
Junk Bonds
US Treasury Bills
14
Financial statements fall to the responsibility of who
Owner
Staff
Management
Auditor
15
The current ratio is found by taking all current assets and dividing by all
Current Liabilities
Net Income
Long Term Liabilities
Equities
16
What is the step in the sequence of the accounting cycle
Collect and Analyze
Record
Prepare and Summarize
Classify and Verify
