Accounting Quiz

What is the role of an accountant?

• The process of keeping financial records

• An individual who has specialized training in accounting procedures

• A financial summary that captures the financial condition of the business at that particular moment

• The total value of the business

What does the balance sheet represent in financial statements?

• A summary of accounting information

• A financial statement that captures the financial condition of the business at that particular moment

• The amount an owner has invested in the business plus or minus profits and losses

• A financial summary that shows how much money the business has made or has lost

Who are considered internal users of financial information?

• Customers, lenders, investors, and tax authorities

• People within the business who use financial information – owners, managers, and employees

• Debts that the business owes

• The total value of the business

What is the purpose of the income statement?

• To show the financial condition of the business at a particular moment

• To display the amount an owner has invested in the business

• To summarize how much money the business has made or has lost

• To report the difference in total assets and total liabilities

What does net worth indicate in a business context?

• The amount an owner has invested in the business plus or minus profits and losses

• The financial condition of the business at a particular moment

• The total value of the business

• The debts that the business owes