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U2L5 HW Intro to Bus

Total questions: 32

Worksheet time: 8hrs 0mins

Name
Class
Date
1.

Fill in the blank: _______ is the process of recording, analyzing, and interpreting the economic activities of a business.

a)

Accounting

b)

Marketing

c)

Budgeting

d)

Auditing

2.

Fill in the blank: An _______ is anything where money changes hands.

a)

economic activity

b)

transaction

c)

exchange

d)

purchase

3.

Which step comes after 'Recording' in the accounting process?

a)

Classifying

b)

Summarizing

c)

Analyzing

d)

Interpreting

4.

Which of the following is a step in the accounting process?

a)

Budgeting

b)

Recording

c)

Marketing

d)

Auditing

5.

One of the objectives of accounting is ___________.

a)

Maintaining records

b)

Increasing sales

c)

Improving customer satisfaction

d)

Enhancing employee productivity

6.

Accounting helps to ___________.

a)

Determine profit or loss

b)

Track inventory levels

c)

Manage employee schedules

d)

Plan marketing strategies

7.

One of the objectives of accounting is to ___________.

a)

Determine financial position

b)

Increase sales

c)

Reduce taxes

d)

Improve employee satisfaction

8.

Profit or loss is determined according to the objectives of accounting by:

a)

calculating the difference between total revenue and total expenses

b)

analyzing the market trends

c)

evaluating employee performance

d)

assessing customer satisfaction

9.

The purpose of determining financial position in accounting is to:

a)

assess the profitability of a business.

b)

evaluate the financial health of a business.

c)

determine the tax liability of a business.

d)

analyze the market trends affecting a business.

10.

Providing information to users helps them by:

a)

improving decision-making

b)

confusing them

c)

making them dependent

d)

overloading them with data

11.

Which of the following is an internal user of accounting information?

a)

Government

b)

Banks

c)

Employees

d)

Investors

12.

Fill in the blank: Accounting is the art of recording, classifying, and summarizing in terms of money transactions which are of financial character, and interpreting the results thereof.

a)

Accounting is the art of recording, classifying, and summarizing in terms of money transactions which are of financial character, and interpreting the results thereof.

b)

Accounting is the science of recording, classifying, and summarizing in terms of money transactions which are of financial character, and interpreting the results thereof.

c)

Accounting is the process of recording, classifying, and summarizing in terms of money transactions which are of financial character, and interpreting the results thereof.

d)

Accounting is the method of recording, classifying, and summarizing in terms of money transactions which are of financial character, and interpreting the results thereof.

13.

Which of the following is an example of an Asset?

a)

House

b)

Loan

c)

Owner's Equity

14.

Which of the following is an example of a Liability?

a)

Car

b)

Loan

c)

Owner's Equity

15.

What are examples of Cash as an asset?

a)

A) Currency, bank deposits, checks, etc

b)

B) Office furniture

c)

C) Vehicles

16.

Accounts Receivable refers to the total amount due from customers (debtors) as a result of purchasing goods/services on credit.

a)

True

b)

False

17.

Fill in the blank: Office Supplies are items purchased for use within the business office, such as _______.

a)

pens, paper, etc.

b)

computers, servers, etc.

c)

furniture, desks, etc.

d)

vehicles, cars, etc.

18.

Fill in the blank: _______ is a capital investment that a company has purchased to perform a specific task for the business, such as machinery, computers, and tools.

a)

Equipment

b)

Furniture

c)

Inventory

d)

Real Estate

19.

Fill in the blank: _______ is the physical structure in which the business operates.

a)

Building

b)

Vehicle

c)

Software

d)

Furniture

20.

Fill in the blank: _______ is the ground on which the building is located.

a)

Land

b)

Water

c)

Sky

d)

Roof

21.

What is a liability?

a)

A liability is anything of value that is owed.

b)

A liability is an asset that generates income.

c)

A liability is a type of investment.

d)

A liability is a form of equity.

22.

What is equity (net worth)?

a)

Equity (net worth) is the value that’s left after you’ve paid off all of your debts. It’s your investment in your assets.

b)

Equity (net worth) is the total amount of money you owe to creditors.

c)

Equity (net worth) is the cash you have in your bank account.

d)

Equity (net worth) is the total value of your liabilities.

23.

Which formula represents Owner's Equity?

a)

Assets * Liabilities = Owner's Equity

b)

Assets - Liabilities = Owner's Equity

c)

Liabilities - Assets = Owner's Equity

24.

Classify the following: A building that the business owns.

a)

Asset

b)

Liability

c)

Owner's Equity

25.

Classify the following: A bank loan.

a)

Asset

b)

Liability

c)

Owner's Equity

26.

Classify the following: The value of the business.

a)

Asset

b)

Liability

c)

Owner's Equity

27.

Classify the following: Money the business owes to a supplier.

a)

Asset

b)

Liability

c)

Owner's Equity

28.

Classify the following: A computer.

a)

Asset

b)

Liability

c)

Owner's Equity

29.

Classify the following: Money owed to a business from a customer.

a)

Asset

b)

Liability

c)

Owner's Equity

30.

What is the primary focus of the statement of cash flows?

a)

To report the company's profitability over a period of time

b)

To ensure that the business is liquid

c)

To display the company's ownership structure

d)

To list the company's investment portfolio

31.

A profit and loss (P&L) statement is:

a)

a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time.

b)

a document that outlines the company's future financial goals.

c)

a report that details the company's assets and liabilities.

d)

a statement that provides information about the company's cash flow.

32.

What does a "Balance Sheet" list?

a)

Revenue, Expenses, Profit

b)

Assets, Liabilities, Owner's Equity

c)

Cash Flow, Investments, Dividends

d)

Sales, Purchases, Inventory