ICPM 3 - Chapter 8

A system of bookkeeping that uses at least two accounting entries to

record a financial transaction to an asset, liability, equity, revenue, or

expense account is best known as which of the following?

• Ledger

• Double-entry bookkeeping

• Journal

• Single-entry bookkeeping

• Audit

An accounting professional hired by an organization or government agency

to prepare and analyze financial statements internally for the organization

is known as which of the following?

• Bookkeeper

• Public Accountant

• Private Accountant

• Executive Accountant

• Certified Accountant

The general cost of doing business, like office space and phones is best

known as which of the following?

• Direct cost

• Overhead

• Budget

• Margin

• Breakeven analysis

__________ is the sum of all money invested and earned in a business that

does not have to be repaid.

• Owners’ equity

• Financial statements

• Liabilities

• Trial balance

• Assets

__________ is the routine, daily categorization and recording of financial

transactions.

• Auditing

• Bookkeeping

• Annual report

• Monthly report

• Trial balance

__________ are financial obligations with repayment terms that extend

beyond one year.

• Current assets

• Long-term liabilities

• Intangible assets

• Fixed assets

• Current liabilities

Which of the following liquidity ratios measures whether an organization

can pay its short-term debts with cash and marketable securities only?

• Total asset ratio

• Current ratio

• Quick ratio

• Cash ratio

• Margin ratio

A yearly summary of the financial health, progress, and future projections

of an organization is best known as which of the following?

• Annual report

• Auditing

• Overhead

• Margin

• Internal rate of return

Net income after taxes ÷ Total assets = __________

• Return on equity

• Profit margin

• Return on investment

• Current ratio

• Current ratio

The principal value of a budget lies within its forecast of cash __________,

and cash __________.

• Outflows, receipts

• Receipts, inflows

• Outflows, inflows

• Ratio, receipts

• Ratio, outflows