Basic terms of accounting

Which of the following is an example of a liability?

• Inventory

• Accounts receivable

• Accounts payable

• Equipment

What does the term 'GAAP' stand for in accounting ?

• Generally accepted accounting principles

• Generally accrued accounting procedures

• Generally applied accounting practices

• Generally accepted accounting principles

Which financial statements reports a company's cash flow from operating, investing and financial activities ?

• Income statement

• Balance sheet

• Cash flow statement

• Statement of retained earnings

Which accounting principles requires that expensive be recorded when they are incurred, regardless of when cash is paid ?

• Matching principal

• Venue recognition principal

• Expense recognition principal

• Accrual principal

What does the term "EBIDTA" stand for in accounting ?

• Earnings Before Income, Taxes, Depreciation, and Amortization

• Earnings Before interest, Taxes, dividends, and Amortization

• Earnings Before interest, Taxes, Depreciation, and Amortization

• Earnings Before Income, Taxes, Dividends, and Amortization

What is the formula for calculating the net income

• Revenues - expenses

• Assets - liabilities

• Cash flow from operating activities

• Retained earnings +dividends

Which financial statements represents a company's financial positions at a specific point in time ?

• Income statement

• Balance sheet

• Cash flow statement

• Statement of retained earnings

A type of asset that represents physical goods for sale.

• Contributed Capital

• Inventory

• Cash in Banks

• Account Receivable

Economic resources of the entity. Include such items as cash, accounts receivables, inventory, land, buildings, equipment, intangible assets and others.

• Income Statement

• Accounts Payable

• Cash Flows Statement

• Assets

Amounts owed to others relating to loans, credits and other types of obligations.

• Liabilities

• Owners Equity

• Revenue

• Assets