4.00 Test Review

Front

The purpose of having accounting standards is to:

Back

create uniformity between financial statements.

Front

Cash is an example of assets.

Back

True

Front

Which represents the inflow of funds into a business? Options: cash, debt, expenses

Back

cash

Front

The finance activity regarding how to source income is called .

Back

acquiring funds

Front

The accounting document that shows a business's revenue and expenses is a/an ________.

Back

Income Statement

Front

________: debts that the business owes.

Back

liabilities

Front

________: a financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement.

Back

income statement

Front

________: the total value of the business.

Back

net worth

Front

people within the business who use financial information – owners, managers, and employees.

Back

internal users

Front

people outside the business who use accounting information – suppliers, banks, customers, lenders, investors, and tax authorities.

Back

external users