Accounting

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Owner Equity
• Equity

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Debt
• Owner Equity

Revenues minus expenses equals:

• Assets
• Liabilities
• Owner Equity
• Net Income

The accounting equation is

• Assets = Liabilities + Owner's Equity
• Assets = Liabilities - Owner's Equity
• Assets - Owner's Equity + Liability

A balance sheet reports a business's financial

• Condition over a specific period of time

• Progress over a specific period of time

• Condition on a specific date

• Progress on a specific date

The overall purpose of accounting is to

• maintain accurate reports.

• compile the business’s expenses.

• keep track of sales.

• control the finances of the business.

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

• accounting.

• controlling.

• financing.

• bookkeeping.

A creditor is most likely to examine a business’s financial accounting records if the business is

• applying for a bank loan.

• selecting a new market.

• selecting a new market.

• complying with regulations.

Checks, receipts, invoices, and purchase orders are examples of

• financial statements.

• department ledgers.

• source documents.

• accounting standards.