WorksheetsAccounting Ch 1 & 2
Total questions: 31
Worksheet time: 16mins
All businesses need accounting services.
True
False
The YMCA is an example of a for-profit organization
True
False
A CPA is a person who has passed a national test and met specified experience and educational standards to become "certified" to practice accounting.
True
False
General accounting rules and procedures differ from business to business
True
False
The corporation is the easiest form of business to organize.
True
False
Service businesses are not intended to operate at a profit.
True
False
GAAP is a set of accepted rules that all accountants use to prepare financial reports
True
False
Operates to earn money for its owners
for-profit business
public accounting
not-for-profit
free enterprise system
operates to support a cause or an interest.
for-profit business
public accounting
not-for-profit
free enterprise system
summarize information about the financial status of a business
management accounting
financial accounting
accounting system
financial reports
designed to collect, document, and report on the financial transactions affecting the business
management accounting
financial accounting
accounting system
financial reports
concerned with preparing information for internal users
management accounting
financial accounting
accounting system
financial reports
concerned with preparing reports for external users such as investors or creditors
management accounting
financial accounting
accounting system
financial reports
A business owned by one person
sole proprietorship
partnership
corporation
none of the above
A business owned by two or more people
sole proprietorship
partnership
corporation
none of the above
A business owned by stockholders or venture capitalists
sole proprietorship
partnership
corporation
none of the above
When a business spends more money to operate than it earns from the sale of goods or services
profit
loss
balance
equity
A(n) ____ buys finished goods and sells them to individuals or other businesses
merchandising business
manufacturing business
service business
factory
The amount of money earned after the costs of operating a business are paid is ____.
profit
capital
revenue
expense
Under the ____ accounting assumption, a business owner must keep the financial records for the business separate from personal records
business entity
going concern
accounting cycle
general
Following the ____ accounting assumption, the accountant prepares reports as though the business will operate indefinitely.
business entity
going concern
accounting cycle
general
A business that produces items to sell to individuals and other businesses
Merchandising business
Manufacturing business
Service business
Product business
The amount of money earned after the costs of operating a business are paid is ____.
expense
capital
revenue
profit
To survive, a business must ____.
make a product consumers want and report profits to the IRS
have adequate start-up capital and prepare periodic reports
earn a profit and have someone willing to take the risk to run it
earn a profit and invest excess profits
Which of the following would not be considered a service business?
ABC Plumbing
Hair Dimensions (salon)
Accurate Pest Control
Roy's Market
Accounting is often call the "language of business" because ____.
it is easy to understand
all business owners have a good understanding of accounting principles
it is fundamental to the communication of financial information
accountants in many companies share financial information
An example of an internal user of accounting information is ____.
the Internal Revenue Service (IRS)
stockholder
the president of a bank that has loaned money to the business
a company manager in charge of sales and production
An example of an external user of accounting information is ____.
the entry-level employee in payroll
the business owner
the president of a bank that has loaned money to the business
a company manager in charge of sales and production
It costs $20 to ship 400 pounds of auto parts. How much does it cost to ship 1,850 pounds?
$80.00
$37.00
$92.50
$46.25
Write as a decimal: 49%
0.49
4.9
0.049
49.00
The sales tax rate is 7.0%. If you purchase a shirt for $49.99, how much will you pay in taxes?
$34.99
$7.14
none of these are correct
$3.50
