Basic Accounting Assessment

Which of these people may use accounting information to make business decisions?

• business owners

• investors

• managers

• journalists

• customers

Accounting is often referred to as the ________________________________ of ______________________________________.

• language, business

• heart, commerce

• soul, management

• engine, economy

The report that shows what someone owns, owes, and the difference is called:

• Liability Statement

• Asset Statement

• Net Worth Statement

• Net Equity Statement

A double rule on a financial statement indicates the total of a calculation.

• True

• False

The principles of right and wrong that guide our decisions are:

• business ethics

• rules

• ethics

• laws

The form of business ownership that has a risk of unlimited liability is:

• sole proprietorship

• C Corp

• S Corp

• Limited Liability Corporation

In a Limited Liability Partnership, if one partner dies, the business can continue to operate as normal.

• True

• False

In a General Partnership, both partners have unlimited liability.

• True

• False

Following GAAP ensures consistent ____________________________________________, meaning everyone is reporting using the same guidelines.

A business has two kinds of equities. They are (choose all that apply)

• expenses

• liabilities

• owner's equity

• assets