Accounting Quiz

A financial transaction is....

• a book where transactions are recorded

• the process of buying a good or service and paying for it

• the balancing of a businesses profits and costs

A system of recording and summarizing financial transactions and analyzing and reporting the results is ________.

• accounting

• audits

• financial transaction

• payroll

Accounting systems are based on debits and credits.

• True

• False

The marketing and sales department handles all the money that flows in and out of the business.

• True

• False

The Uniform System of Accounts makes it possible and common to compare financial data among different ____.

• accounting departments

• accounting divisions

• hotels and lodging properties

• restaurants and cafés

A _____________ shows the financial value of the company on a specific date; lists everything the business owns and everything it owes, generally this should be balanced.

• balance sheet

• cash flow statement

• income statement

• point of sale

A(n) ____ summarizes all the revenue made and all the expenses paid out during a specific period of time, such as a month or a year.

• balance sheet

• cash flow statement

• income statement

• point of sale

A __________ shows the way that cash moves in and out of the business during a specific period of time.

• balance sheet

• cash flow statement

• income statement

• point of sale

On a balance sheet, the total assets equal the total sum of the total liabilities plus owners equity.

• True

• False

The formula for equity is...

• Equity = Total assets -Total liabilities

• Equity = Total liabilities - Total assets