IBT-Accounting

Inaccurate or incomplete financial records can cause you to mismanage your business or can cause serious legal problems.

• True

• False

Accounts

• Are records of increases and decreases in individual financial statements

• Are only used by large entities with many transactions

• Do not reflect money amounts

• Are used only by entities that manufacture products

Be sure to have a ___________ program and a ___________ on your computer to protect you computer's information from identity theft.

• good, lock

• anti-virus, firewall

• productivity, hard drive

• spreadsheet, security

It is a good practice to keep both business and financial personal records together.

• True

• False

If you own a business, it is necessary to keep up with sales tax information.

• True

• False

Which of the following accounts is an asset account?

• Owner's Equity

• Accounts Payable

• Equipment

• Salaries Expense

What are the three parts of a Balance Sheet?

• Assets, Liabilities, Capital

• Cash, Rent Expense, Owner's Equity

• Revenue, Expenses, Net Profit/Loss

• Cash, Accounts Payable, Revenue

What is another name for Owner's Equity?

• Revenue

• Accounts Payable

• Assets

• Capital

What is the accounting equation?

• Assets - Liabilities = Owner's Equity
• Assets = Liabilities + Owner's Equity
• Assets + Liabilities = Owner's Equity
• Assets - Expenses = Liabilities

Assets equals $700,000 and its equity is $400,000. What is the amount of liabilities? 

• $300,000
• $1,100,000
• -$300,000
• -$1,100,000