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ACC I Unit 1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The standards, conventions, and rules that accountants follow to prepare financial reports are known as:

a)

generally accepted accounting principles

b)

accounting and audit procedures

c)

management accounting

d)

executive accounting

2.

Which term refers to the owner having full responsibility for company debts and obligations?

a)

limited liability

b)

stock obligation

c)

unlimited liability

d)

taxation obligation

3.

The accounting assumption that a business is expected to survive and operate indefinitely is called a:

a)

business entity

b)

capital concern

c)

charter entity

d)

going concern

4.

In which type of business ownership structure does each owner in the group risk losing his/her personal property even though responsibilities are shared?

a)

limited liability company

b)

sole proprietorship

c)

partnership

d)

corporation

5.

Which type of business buys raw materials and transforms them into finished products?

a)

entrepreneurial

b)

manufacturing

c)

merchandising

d)

service

6.

What is the common term for a retirement savings plan sponsored by employers that will allow workers to save and invest from their paychecks before taxes?

a)

401(k) savings plan

b)

certificate of deposit

c)

529 savings plan

d)

stock fund

7.

What is the term for a financial reporting period of time beginning on January 1 and ending on December 31?

a)

accounting cycle

b)

calendar year

c)

budget year

d)

audit cycle

8.

In which business ownership structure are business debts the total responsibility of a business so that personal property of the owner is protected from loss?

a)

corporation

b)

partnership

c)

sole proprietorship

d)

limited liability company

9.

The amount of money earned above the amount of expenses incurred to keep a business in operation is called:

a)

net loss

b)

net profit

c)

equity capital

d)

going concern

10.

Which type of accounting focuses on reporting information to executives and internal users of information who are involved in making day-to-day operating decisions such as purchasing and hiring?

a)

computerized

b)

financial

c)

management

d)

manual