Practice Exam #2

Front

Which of the following is a user of accounting information? Managers, Investors, Creditors, All of the above

Back

All of the above

Front

What is the purpose of a net worth statement?

Back

To show the financial position of a business at a specific point in time

Front

What must be done with data in accounting?

Back

It must be recorded and reported in accounting reports.

Front

Who uses the information provided in accounting reports to make business decisions and measure performance?

Back

Business owners, managers, investors, and others

Front

What is the process of planning, recording, analyzing, and interpreting financial information called?

Back

Accounting

Front

What is an accounting system?

Back

A planned process designed to compile financial data and summarize the results in accounting records and reports.

Front

What are financial reports that summarize the financial condition and operations of a business called?

Back

Financial Statements

Front

What does a net worth statement allow a person to do?

Back

See the financial position of a borrower on a specific date and make a lending decision

Front

What is anything of value that is owned called?

Back

Asset

Front

What is an amount owed called?

Back

Liability