Accounting and Business Concepts

First step of the accounting cycles is to analyze each transaction as it happens.

• What is the first step of the accounting cycle?

• Is the first step of the accounting cycle to record transactions?

• Does the accounting cycle start with preparing financial statements?

• Is closing the books the first step of the accounting cycle?

What can be used as evidence of a sales transaction?

• Cash register tapes

• Receipts from suppliers

• Employee time cards

• Inventory lists

Which of the following is one of the final steps in the accounting cycle? Prepare the financial statements.

• Prepare the financial statements.

• Record journal entries.

• Post to the ledger.

• Prepare a trial balance.

The following is an acceptable source of documentation: signature or stamp on a document.

• signature or stamp on a document

• handwritten note

• verbal agreement

• email confirmation

What is the purpose of a balance sheet?

• The purpose of a balance sheet is to list all assets, liabilities, and equity as they stand at the end of a given accounting period.

• To calculate the net income of a company for a specific period.

• To track the cash flow in and out of a business.

• To determine the market value of a company's shares.

How many owners does a sole proprietorship have?

• One.

• Two.

• Three.

• Four.

What document is required to form a LLC?

• Articles of organization.

• Certificate of incorporation.

• Operating agreement.

• Business license.

Which type of business can raise funds by selling shares of stock to the public?

• Corporation

• Sole Proprietorship

• Partnership

• Limited Liability Company

Corporations are controlled and directed by a governance.

• What controls and directs corporations?

• A marketing strategy

• Financial audits

• Employee unions

A legal entity called a corporation is known as incorporation.

• What is a corporation?

• A type of partnership

• A sole proprietorship

• A limited liability company