Accounting Test 1 Review

Which of the following correctly defines the acronym GAAP?

• Generally Accrued Accounting Principles

• Generally Accepted Accounting Process

• Generally Advised Accounting Principles

• Generally Accepted Accounting Principles

Which type of accounting is used to develop information for outside sources such as investors?

• Tax accounting

   

• External accounting

• Financial accounting

• Management accounting

Which of the following occurs when the amount of money earned is less than the amount of money spent?

• Profit

   

• Loss

• Depreciation

   

• Social Cost

Which of the following refers to a company’s moral duty to uphold laws and regulations?

• Profit responsibility

   

• Regulatory responsibility

   

• Ethical responsibility

• Social cost

Which of the following can be defined as an individual who owns a part of a company through stock ownership?

• Auditor

• Shareholder

   

• Creditor

• Tax accountant

   

Which of the following is NOT an asset for a boutique?

• Shoe inventory

   

• T-shirt inventory

• Accounts payable

• Accounts receivable

Which of the following types of information is found on an income statement?

• Company assets

   

• Company revenues

• Company cash flow

   

• Company liabilities

Under which of the following categories would land appear on a balance sheet?

• Assets

• Liabilities

• Owner’s equity

• Stockholders’ equity

   

Baker Landscaping received $200 in cash for mowing a 5 acre lot. Which of the following accounts is debited?

• Cash

• Inventory

• Service revenue

• Accounts receivable

Which of the following is the first step of the accounting process?

• Prepare financial statements

   

• Close temporary accounts

   

•  Record journal entries

• Analyze transactions