Business Essentials Unit 4.0 Test

Front

The process of keeping the financial records of a business is known as?

Back

accounting

Front

The overall purpose of accounting is to do which of the following? maintain accurate reports, compile the business's expenses, keep track of sales, control the finances of the business

Back

control the finances of the business

Front

For an accounting system to be useful to the business, the accounting information it contains must be which of the following?
Options: accurate and up to date., approved by the chief executive officer, posted by an accountant., recorded using the accrual method.

Back

accurate and up to date.

Front

Checks, receipts, invoices, and purchase orders are examples of what accounting information?

Back

source documents.

Front

Accounting records for a business show that the week's total sales revenues were $125,000. Cash sales accounted for $50,000 and credit sales, $75,000. This is an example of what accounting practice?

Back

the accrual method of accounting.

Front

Which of the following presents the first three steps in the accounting cycle in the correct order? Post, analyze, and journalize, Analyze, post, and journalize, Analyze, journalize, and post, Post, journalize, and analyze

Back

Analyze, journalize, and post

Front

Which of the following categories of information are found on a balance sheet: Income, expenditures, profit; Assets, liabilities, owner's equity; Assets, liabilities, margin; Revenues, expenses, profit

Back

Assets, liabilities, owner's equity

Front

What accounting record would summarize a business's profit or loss for a previous year? Options: Bank statement, Inventory record, Income statement, Balance sheet

Back

Income statement

Front

Finance is the business function that involves managing which of the following? Information, Money, Marketing, production

Back

Money

Front

Money that a business owes to other companies is known as which of the following? equity, assets, accounts payable, accounts receivable

Back

accounts payable