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intro to business chapter 14

Total questions: 27

Worksheet time: 27mins

Name
Class
Date
1.

What does GAAP mean?

a)

generally accepted accounting principals

b)

a yearly document that describes a firm's financial status

c)

things of value owned by a firm

d)

an accountant that has passed a test by the AICPA

2.

What is an Annual Report

a)

financial statement that summarizes a firm's financial posistion at a specific point in time.

b)

I dont know :|

c)

yearly document that describes a firms financial status

d)

the total ammount of investment in the firms minus any liabilities: net worth

3.

assets are:

a)

debt- what a firm owes

b)

generally accepted accounting principals

c)

a document that describes a firm's financial status

d)

things of value owned by a firm

4.

define financial accounting

a)

reviewing records used to prepare financial statements

b)

focuses on preparing external financial reports that are used by outsiders

c)

provides financial information that managers inside the organization can use to make decisions

d)

generally accepted accounting princeipals

5.

the speed at which an asset can be converted to cash is called?

a)

Auditing

b)

Liabilities

c)

Assets

d)

Liquidity

6.

what is an accountant that has passed a test by the AICPA called?

a)

CPA

b)

GAAP

c)

An Accountant

7.

CPA stands for Certified Public Accountant

a)

True

b)

False

8.

Total profit minus all dividends paid to stockholders equals

a)

GAAP

b)

owners equity

c)

retained earnings

d)

deprication

9.

define: each transaction is recorded as 2 entities, so that 2 accounts or records are charged.

a)

auditing

b)

Double-Entry Bookkeeping

c)

financial accounting

d)

deprecation

10.

managerial accounting is-

a)

providing financial information that managers inside the organization can use to make decisions.

b)

a financial statement that summarizes a firm's financial position at a specific point in time.

c)

The total amount of investment in the firm minus any liabilities: Net worth.

11.

liabilities are-

a)

things of value owned by a firm

b)

workers

c)

what a firm owes (debt)

d)

dangers in an organization's location

12.

the allocation of an asset's original cost to the years in which it is expected to produce revenue is called

a)

liabilities

b)

deprication

c)

Liquidity

d)

auditing

13.

Auditing is:

a)

things of value owned by a firm

b)

the speed at which an asset can be converted into cash

c)

what a firm owes(debt)

d)

reviewing records used to prepare financial statements

14.

the total ammount of investment in the firm minus any liabilities (net worth) equals

a)

GAAP

b)

double- entry bookkeeping

c)

Owners Equity

d)

retained earnings

15.

A Balance Sheet is a financial statement that summarizes a firms finnancial position at a specific point in time.

a)

true

b)

false

16.

the difference between net sales and the cost of goods sold equals:

a)

Revenue

b)

Gross profits

c)

Net profit

d)

Net sales

17.

______ is calculated by subtracting all expenses from revenues

a)

Net sales

b)

Acid test

c)

Revenue

d)

Net Profit

18.

a(n) _______ summarizes the firm's revenues and expenses and shows its total profit or loss over a period of time.

a)

income statement

b)

statement of cash flows

c)

earnings per share

d)

net sales

19.

what is an acid test?

a)

a test to see how acidic something is

b)

a ration of total current assets (excluding current inventory) to total current liabilities

20.

Expenses are the cost of generating revenue

a)

true

b)

false

21.

Net Working capitol is calculated by:

a)

subtracting all expenses from revenues

b)

subtracting net sales from net profit

c)

subtracting total current liabilities from total current assets

22.

what is the ratio of net profit to the number of shares of common stock

a)

Acid test

b)

Net sales

c)

Net profit

d)

Earnings Per Share

23.

Revenue is the dollar amount of sales plus any other income received from sources such as interest

a)

true

b)

false

24.

what is a Statement of Cash Flows

a)

money flowing in a river

b)

a summary of the money flowing into and out of a firm

c)

an income statement

25.

what is the amount left after deducting sales discounts and returns and allowances from gross sale?

a)

gross sale

b)

Net profit

c)

Net income

d)

Net sales

26.

what are the three financial statements that are included in the annual report?

a)

Balance Sheet

b)

Income statement

c)

Gross Profit

d)

Statement of Cash Flows

27.

what are the largest public accounting firms called?

a)

The Big 4

b)

The Top Firms

c)

The Fantastic Firms