POB - Unit 6 Review 2

Businesses would note be able to determine if they are meeting their financial goals without accurate:

• production plans.

• marketing plans.

• accounting systems.

• distribution systems.

Businesses use the information collected through the accounting process to prepare accurate:

• balance sheets.

• purchase orders.

• Inventory forms.

• promissory notes.

The process of keeping the financial records of a business is known as

• accounting

• controlling

• financing

• bookkeeping

Which of the following categories of information are found on a balance sheet:

• Income, expenditures, profit

• Assets, liabilities, owner's equity

• Assets, liabilities, margin

• Revenues, expenses, profit

Which of the following makes comparisons of the financial conditions at multiple organizations possible:

• Bookkeeping

• Source documents

• Accounting standards

• Trial balance

What type of accounting method would most likely be used by a small business owner who does not offer credit?

• Check method

• Cash method

• COD method

• Accrual method

Which of the following is a Liability?

• Rent payable

• Cash

• Capital

• Rent receivable

An accounting device used to analyze transactions is called

• T Account

• Account System

• Account Equation

• Transactions

The formula for the Accounting Equation is

• Assets + Liabilities = Owners' Equity

• Assets + Liabilities + Owners' Equity

• Assets = Liabilities + Owners' Equity

• Assets = Liabilities - Owners' Equity

In any accounting document, the phrase "Less" means to

• Invest

• Do Not Equate

• Deduct

• Total