Accounting Fundamentals Test #1

What does GAAP stand for

• Good Apples Are Perfect

• Grandmas Are Always Punctual

• General Accepted Accounting Principals

• General Art Are Pleasant

A ​ (a)   handles a broad range of responsibilities, makes business decisions, and prepares and

interprets financial reports.

• Accountant
• Manager
• Principal
• Logistics Engineer

A ​ (a)   ​ business operates to

earn money for their owners.

• For-Profit
• Non-Profit
• Charity
• Football Team

CPA stands for

• Certified Personal Accountant

• Certified People Audit

• Care Professional Animal

• Careful Personal Accountant

The Accounting Equation

​ (a)   = ​ (b)   + ​ (c)  

• Assets
• Liabilities
• Equity
• Money

The stuff the business ​ (a)   is equal to the stuff the business ​ (b)  

• Owns
• Owes
• Buys
• Sells

Loans, Taxes, Wages owed, etc are a ​ (a)  

• Liability
• Asset
• Equity

The Balance Sheet must ​ (a)   balance

• ALWAYS
• Sometimes
• not necessarily
• RARELY

One objective of Accounting is to depict the ​ (a)   position of the company

• Financial
• Location
• Image
• SocialStatus

What does the acronym DEALER stand for in accounting?

• Debits, Expenses, Assets, Liabilities, Equity, Revenue

• Dividends, Expenses, Assets, Liabilities, Equity, Revenue

• Debits, Expenses, Assets, Liabilities, Equity, Retained Earnings

• Dividends, Expenses, Assets, Liabilities, Equity, Retained Earnings