BAF3M-Final Exam

Front

Definition: the process of gathering and preparing financial information about a business or other organization in a form that provides accurate and useful records and enables decisions to be made.

Back

accounting

Answer explanation

The correct answer is accounting, as it involves gathering and preparing financial information to create accurate records that aid in decision-making for businesses and organizations.

Front

Which document serves as the original record of a transaction and provides all necessary details for accounting?

Back

source document

Answer explanation

The correct choice is 'source document' because it refers to the original record of a transaction, like an invoice, containing all necessary details for accounting.

Front

Anyone who owes money to the business.

Back

debtor

Answer explanation

The term for anyone who owes money to a business is 'debtor.' A debtor is an individual or entity that has borrowed money and is obligated to pay it back, distinguishing them from liabilities or expenses.

Front

What do we call a financial event that affects the financial position of a business?

Back

business transaction

Answer explanation

The financial event that changes the values in Samuel's accounts is called a 'business transaction.' This term refers to any activity that affects the financial position of a business.

Front

What is the capital of France?

Back

Paris

Answer explanation

Hannah and Noah are following the principle of conservatism, which advises recognizing expenses and liabilities as they arise, while only counting savings when they are certain, ensuring a cautious approach to financial reporting.

Front

What is the capital of France?

Back

Paris

Answer explanation

The essential business form used by David and Luna to document sales on account is called a sales invoice. It includes details like the description of goods sold and their prices, making it crucial for record-keeping.

Front

Identify the account type with three money columns: one for debits, one for credits, and one for the balance.

Back

Balance Column Account

Answer explanation

The account type with three money columns for debits, credits, and balance is a Balance Column Account. This format allows for easy tracking of transactions and the resulting balance.

Front

What do we call the magical period of time over which earnings are measured?

Back

accounting period

Answer explanation

The correct term for the period over which earnings are measured is 'accounting period.' This term encompasses any time frame used for financial reporting, including fiscal periods and fiscal years.

Front

What does the mysterious envelope from Elijah's supplier contain?

Back

purchase invoice

Answer explanation

The envelope likely contains a purchase invoice, which details the items Elijah ordered from his supplier. This is a common document exchanged in business transactions, unlike the other options which serve different purposes.

Front

Which tax system combines the Federal GST and the provincial tax rates?

Back

HST

Answer explanation

The HST, or Harmonized Sales Tax, is a tax system adopted by many provinces that combines the Federal GST with provincial tax rates, simplifying the tax process for consumers and businesses.