Busi Essents Unit 4.0 Review

The process of keeping the financial records of a business is known as?

• accounting.

• controlling.

• financing.

• bookkeeping.

The overall purpose of accounting is to do which of the following?

• maintain accurate reports.

• compile the business’s expenses.

• keep track of sales.

• control the finances of the business.

For an accounting system to be useful to the business, the accounting information it contains must be which of the following?

• accurate and up to date.

• approved by the chief executive officer.

• posted by an accountant.

• recorded using the accrual method.

Checks, receipts, invoices, and purchase orders are examples of what accounting information?

• financial statements.

• department ledgers.

• source documents.

• accounting standards.

• classifying financial information.

• the cash accounting method.

• an income statement.

• the accrual method of accounting.

Which of the following presents the first three steps in the accounting cycle in the correct order?

• Post, analyze, and journalize

• Analyze, post, and journalize

• Analyze, journalize, and post

• Post, journalize, and analyze

Which of the following categories of information are found on a balance sheet:

• Income, expenditures, profit

• Assets, liabilities, owner’s equity

• Assets, liabilities, margin

• Revenues, expenses, profit

What accounting record would summarize a business’s profit or loss for a previous year?

• Bank statement

• Inventory record

• Income statement

• Balance sheet

Finance is the business function that involves managing which of the following?

• information

• money

• marketing

• production

Money that a business owes to other companies is known as which of the following?

• equity

• assets

• accounts payable

• accounts receivable