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Worksheets4.01 Post Test
Total questions: 20
Worksheet time: 10mins
The process of keeping the financial records of a business is known as
accounting
controlling
financing
bookkeeping
The overall purpose of accounting is to
maintain accurate reports.
keep track of sales.
compile the business’s expenses.
control the finances of the business.
Why are accurate accounting records important to a business?
They prevent any financial losses.
They show how the business is doing.
They increase the return on investments
They give the business an image of success.
Which of the following groups makes regular use of a business’s managerial accounting information:
Managers
Customers
Creditors
Investors
A creditor is most likely to examine a business’s financial accounting records if the business is
applying for a bank loan.
selecting a new market.
using cash accounting.
complying with regulations.
Riley is an employee of the federal government who studies the financial reports of major businesses in a specific industry. The government’s purpose in assigning this task to Riley is to
determine creditworthiness
search for profitable investments.
decide if funds are available for pay raises.
identify trends in the industry.
For an accounting system to be useful to the business, the accounting information it contains must be
accurate and up to date.
approved by the chief executive officer.
posted by an accountant.
recorded using the accrual method.
Which of the following is a requirement for a good accounting system:
It should be updated annually.
It should provide needed information quickly.
It should eliminate the need for an accountant.
It should be replaced every two or three years.
Two employees used a business’s computerized accounting system to change some records. They were able to steal $50,000 from the business because the accounting system lacked which of the following:
Protection from theft and fraud
An affordable price
A manual system as backup
Printed financial statements
Printed financial statements
financial statements.
department ledgers.
source documents.
accounting standards.
What type of accounting method would most likely be used by a small business owner who does not offer credit?
Check method
Accrual method
COD method
Cash method
What type of accounting method would most likely be used by a large business that has a large number of outstanding loans and customer charge accounts?
Check method
Cash method
COD method
Accrual method
Accounting records for a business show that the week’s total sales revenues were $125,000. Cash sales accounted for $50,000 and credit sales, $75,000. This is an example of
classifying financial information.
the cash accounting method.
an income statement.
the accrual method of accounting.
Which of the following is a true statement:
Bookkeeping is the same as accounting.
Bookkeeping does not use computers.
Bookkeeping is limited to information on sales.
Bookkeeping records business transactions.
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 makes comparisons of the financial conditions at multiple organizations possible:
Bookkeeping
Source documents
Accounting standards
Trial balance
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
A bank denies a business owner’s application for credit saying, “We feel that you would be unable to make the monthly payments because of your other debts.” What financial report did the bank review?
Budget
Balance sheet
Income statement
Operating budget
What accounting record would summarize a business’s profit or loss for a previous year?
Bank statement
Inventory record
Income statement
Balance sheet
Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year:
Balance sheet
Cash flow statement
Income statement
Bank statement
