Introduction to Virtual Accounting Module 1 Review

Which of the following characteristics of a sole proprietorship would be considered a disadvantage?

• Easier to set up

• Fewer regulations

• Losses are limited to the owners investment

• Owner controls the business decisions

The three types of organizations that employ accountants are for-profit organizations, not-for-profit organizations and public accounting firms.

• True

• False

The three types of business operations are manufacturing, Merchandising, and Charitable

• True

• False

An accounting _____, also known as an accounting cycle, is an amount of time covered by and accounting report.

• time

• business

• period

• none of the above

The three accounting assumptions are all of the following except.

• Business entity

• Accounting Period

• Going concern

• Accounting cycle

A calendar year begins on January 1 and ends on December 31.

• True

• False

A fiscal year can begin and end on any dates of the 12 month period.

• True

• False

To add cells A1, A2, A3 and A4, we would use the formula =SUM(A1:A4).

• True

• False

The amount of money earned over and above the amount spent to keep the business operating is called

• take home pay

• profit

• withdrawals

• none of the above

When an entrepreneur opens a business, they may face many potential risks. Choose the items below that would NOT be considered risks for an entrepreneur.

• lose the security of steady wages and medical benefits

• pay own expenses

• possibility of losing money

• long hours

• Pride of ownership