Nature of Accounting

Front

Which of the following best describes a business owned by two or more individuals? Sole Proprietorship, Partnership, Corporation, Service Business

Back

Partnership

Front

What are tangible items that can be touched and sold to customers called?

Back

Goods

Front

Which term refers to the process of recording financial transactions, preparing reports, and interpreting information used to make wise financial decisions?

Back

Accounting

Front

A business that earns profits by providing services that meet customer needs and wants is known as a:

Back

Service Business

Front

Why is it important for businesses to follow the rules, standards, and practices known as GAAP?

Back

To ensure consistency and reliability in financial reporting

Front

Which of the following is a key reason ethics are important in accounting?
To increase sales,
To ensure financial information is trustworthy,
To encourage competition,
To reduce costs

Back

To ensure financial information is trustworthy

Front

Which form of business is easiest to start but has unlimited liability? Options: Sole Proprietorship, Partnership, Corporation, Merchandising Business

Back

Sole Proprietorship

Front

The business entity concept ensures that:

Back

Personal and business finances remain separate

Front

Why is integrity an essential quality for an accountant?

Back

It ensures financial information is accurate and trustworthy

Front

Give one example of a service business and one example of a merchandising business.

Back

Service: Bank, Merchandising: Grocery Store