Accounting Basics Flashcard

Front

Which one of the following items is not found on a Balance Sheet? Cash, Gross Profit, Assets, Liabilities

Back

Gross Profit

Front

Which accounting system most accurately reflects profitability? Cash Accounting, Flow of Funds Accounting, Accrual Accounting

Back

Accrual Accounting

Front

An account receivable is:

Back

An Asset

Front

Which of the following is most important to the daily operations of a business? Assets, Retained Earnings, Cash

Back

Cash

Front

When people speak about the bottom line, they are referring to:

Back

Net Profit

Front

A prepaid expense is

Back

an Asset

Front

Which would you find on an Income Statement? Expense, Fixed Asset, Liability

Back

Expense

Front

Which of the following expenses does not affect your cash position in running a business: Lease Expense, Advertising Expense, Depreciation Expense?

Back

Depreciation Expense

Front

Which of the following is a basic accounting equation? Net Worth = Assets + Profits, Gross Profit - Sales. = Gross Profit, Assets = Liabilities + Owner's Equity

Back

Assets = Liabilities + Owner's Equity

Front

What is the term for the raw materials used in producing a product?

Back

Inventory