BE Unit 4 4.01

The accounting document that shows a business’s revenue and expenses is a/an:

• balance sheet

• income statement

• cash flow statement

• statement of owners equity

Kathy wants to know whether her boutique made or lost money this month. The financial document she should view is her:

• balance statement

• income statement

• cash flow statement

• statement of owners equity

Isabelle owns a home cleaning business. She invoices her customer and records the transaction as soon as she finishes each home cleaning. Which type of accounting method is Isabelle using?

• accrual

• cash

• cost

• managerial

The finance activity regarding how to source income is called:

• accounting

• acquiring funds

• administering assets

• making capital investment decisions

The Happy Toys Company Board of Directors has decided to give some of its profits from the year to its shareholders. It has decided to pay a:

• bribe

• dividend

• liability

• tax

Cash is an example of:

• assets

• expenses

• equity

• liabilities

Which represents the inflow of funds into a business?

• cash

• debt

• expenses

• liabilities

The purpose of having accounting standards is to:

• create jobs for people

• avoid experiencing employee conflicts

• create uniformity between financial statements

• produce documents that look professional