Semester 1 Final (Ch. 17-20, App. D) Part 1

Front

Which of the following statements accurately describes the relationship between bookkeeping and accounting? Bookkeeping and accounting are two names for the same process, Bookkeeping is the process of recording financial transactions, while accounting involves analyzing and interpreting this data, Accounting is a preliminary step before bookkeeping, Bookkeeping is only necessary for large corporations, whereas accounting is used by all types of businesses

Back

Bookkeeping is the process of recording financial transactions, while accounting involves analyzing and interpreting this data

Front

Which financial statement reports the profit or loss of a company over a specified period of time?

Back

Income Statement

Front

Which financial statement represents what the company owns and owes as of a specific date?

Back

Balance Sheet

Front

What types of accounts are shown on a balance sheet?

Back

Assets, Liabilities & Owners Equity

Front

On a balance sheet, where would you find the amounts owed to creditors?

Back

Liabilities

Front

Which type of financial ratios would you analyze to assess your company's ability to meet short-term obligations? Options: Leverage Ratios, Liquidity Ratios, Activity Ratios, Profitability Ratios

Back

Liquidity Ratios

Front

In accounting, the fundamental equation is represented as Assets = ???

Back

Liabilities + Equity

Front

Which of the following refers to items that can be converted to cash within one year? Fixed Assets, Long-Term Assets, Current Assets, Current Liabilities

Back

Current Assets

Front

The buildings and land owned by a business would be classified as __________, and loans taken by it would be classified as ________

Back

Long-Term Assets, Long-Term Liabilities

Front

A corporation has current assets of $120 Million and current liabilities of $80 Million. Total assets are $480 Million, and total liabilities are $240 Million. Its Current ratio is __________ and its Debt to Equity ratio is _________

Back

1.5, 1