Online Quiz 1

It is the process of identifying, measuring, and communicating economic information to permit informed judgment and decisions by users of information.

• Accounting

• Bookkeeping

• Marketing

• Housekeeping

A type of business that purchases goods from other businesses and sells them to customers.

• Tourism

• Service

• Manufacturing

• Merchandising

A type of business structure that is owned by a single individual.

• Partnership
• Corporation
• Limited Liability Company
• Sole Proprietorship

 A type of user of accounting information who needs information on the firm’s ability to pay bills on time so they can decide whether or not to extend credit.

• Suppliers
• Investors
• Creditors
• Debtors

Another type of accounting information user who is concerned with the firm’s profitability and current financial condition.

• Supplier
• Investor or Shareholder
• Customer
• Competitor

Which of the following phases in the accounting process comes first?

• Preparing financial statements
• Auditing financial records
• Closing the accounting books
• Identifying and analyzing transactions

Who is considered as the father of modern accounting?

• Fra Luca Pacioli

• Isaac Newton
• Galileo Galilei
• Nicolaus Copernicus

The following are descriptions of a partnership. Which is not?

• Has only one owner

• The partners share the risks of a loss and share in the profit

• Partners may have little influence on business decisions

• Partners may disagree on how to run businesses

1. This refers to the outflow of assets resulting from cash spent or liability incurred in order to produce revenue. This decreases the owner's equity.

• Income
• Assets
• Equity
• Expenses

It is a summary of cash inflows and cash outflows for a specific period of time, such as a month or a year.

• Income statement
• Cash flow statement
• Balance sheet
• Profit and loss statement