Accounting Midterm

The amount of money earned after the costs of operating a business are paid is ____.

• Revenue

• Profit

• Income

• Capital

Which of the following would not be considered a service business?

• Delta

• General Motors Corp

• Alamo Rent A Car

• Hudson's Lawn Mowing Inc

An example of an accounting assumption is ____.

• all businesses prepare reports for governmental review

• business transactions are regularly adjusted for inflation

• a business has the ability to operate indefinitely

• all businesses must pay taxes to the government in a timely fashion

The most common form of business organization is the ____.

• sole proprietorship

• Corporation

• Non-profit

• partnership

Accounting is often call the "language of business" because ____.

• its easy to understand

• it is fundamental to the communication of financial information

• all business owners have a good understanding of accounting principles

• accountants in many companies share financial information

The assumption that requires accounting reports to be prepared for a specific period of time is

• Accounting Period

• Going Concern

• Business entity

If the creditor's financial claim to property totals $1,000 and the owner's financial claim to property totals $11,000, the property value is ____.

• 1,000

• 12,000

• 11,000

Accounts Receivable is an example of....

• Asset

• Liability

• Owners Equity

• None of the above

All of the following are asset account titles except...

• Cash in Bank

• Office Furniture

• Accounts Payable

• Computer Equipment

A business transaction that involves a purchase on account is a....

• Cash Transaction

• Credit Transaction

• Investment

• Exepense