Accounting for small business

The period of time over which revenues are compared with expenses in order to determine profit is called...

• the life of the business

• accrual accounting

• accounting period

• reporting period

A collection of raw facts are referred to as ....

• information

• accounting reports

• data

• tax return

Data refers to raw facts and information is data put into a meaningful format.

• False

• True

Information is not...

• a balance sheet

• a receipt

• an income statement

• a cash flow statement

How many qualitative characteristics are there?

• 6

• 5

• 4

• 7

Rules and regulations that provide a framework of acceptable accounting procedures is called

• standards of accounting

• accounting standards

• accounting reports

• accounting information

A qualitative characteristic that requires all information that could influence decision makers to be included in accounting reports is..

• faithful representation

• relevance

• comparability

• verifiability

A qualitative characteristic of accounting that requires information being reported to be complete, without bias and free from error is....

• relevance

• timeliness

• understandability

• faithful representation

A qualitative characteristic of accounting that requires financial reports to be prepared so that performance can be compared is ...

• understandability

• comparability

• relevance

• faithful representation

A qualitative characteristic of accounting that enables accounting information to be checked against business documents is ....

• understandability

• comparability

• timeliness

• verifiability