Fucking Financial Accounting Test 1

103 Questions | Total Attempts: 83

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Financial Accounting Quizzes & Trivia

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Questions and Answers
  • 1. 
    Accounting
    • A. 

      An information system that measures, processes, and communicates financial information about an economic entity

    • B. 

      Asset = liabilities + stock holders equity

    • C. 

      The amount over par value in a corporations contributed capital

  • 2. 
    Financial accounting
    • A. 

      The recording of all business transaction in terms of money

    • B. 

      The most important body for developing rules on accounting practice

    • C. 

      The process of generating and communicating accounting information in the form of financial statements to those outside the organization

  • 3. 
    Dividends
    • A. 

      Competence and diligence in carrying professional responsibilities

    • B. 

      Distributions to stockholders of assets (usually cash) generated by past earnings

    • C. 

      The economic resources of a company that are expected to benefit future operations

  • 4. 
    Management accounting
    • A. 

      The people who have overall responsibility for operating a business and meeting its goals

    • B. 

      The process of producing accounting information for internal use by managers

    • C. 

      The process of producing accounting information for external use by managers

  • 5. 
    Financial accounting standards board (fasb) is the most important body for developing rules on accounting practice; it issues statements of financial accounting standards
    • A. 

      True

    • B. 

      False

  • 6. 
    Public company accounting oversight board (pcaob) is a governmental body created by the sarbanes-oxley act to regulate the accounting profession
    • A. 

      True

    • B. 

      False

  • 7. 
    Balance sheet
    • A. 

      The most common form of stock

    • B. 

      The financial statement that shows a business's assets, liabilities, and stock holders equity as of specific date. also called the statement of financial position

    • C. 

      The value of one currency in terms of another

  • 8. 
    Accounting equation
  • 9. 
    Assets
    • A. 

      The economic resources of a company that are expected to benefit future operations

    • B. 

      The inflows and outflows of cash into and out of a business

    • C. 

      The most common form of stock

  • 10. 
    Liabilities
    • A. 

      Activities undertaken by management to spend capital in productive ways that will help a business achieve its objectives

    • B. 

      Having enough cash available to pay debts when they are due

    • C. 

      A business's present obligations to pay cash, transfer assets, or provide services to other entities in the future

  • 11. 
    Equity
    • A. 

      The oversight of a corporation's management and ethics by the board of directors

    • B. 

      A code of conduct that addresses whether actions are right or wrong

    • C. 

      Represents the claims of the owners of a corporation (the shareholders) to the assets of the business.

  • 12. 
    Revenues
    • A. 

      Decreases in stockholders equity that result from operating a business

    • B. 

      Increases in stockholders equity that result from operating a business

  • 13. 
    Expenses
    • A. 

      Increases in stockholders equity that result from operating a business

    • B. 

      Decreases in stockholders equity that result from operating a business

  • 14. 
    Retained earnings
    • A. 

      Stockholders' equity that has been generated by business operations and kept for use in the business

    • B. 

      Impartiality and intellectual honesty

    • C. 

      The recording of all business transactions in terms of money

  • 15. 
    Partnership
    • A. 

      A business that is owned by two or more people and that is incorporated

    • B. 

      A business that is owned by two or more people and that is not incorporated

  • 16. 
    Corporation
    • A. 

      A business unit granted a state charter recognizing it as separate legal entity having it own rights, privileges, and liabilities distinct from those of its owners.

    • B. 

      The economic resources of a company that are expected to benefit future operations

  • 17. 
    Disadvantages of partnership vs corporation: a partnership is the unlimited liability of its owners. unlimited liability can be avoided by organizing the business as a corporation or, in some states, by forming what is known as a limited liability partnership.
    • A. 

      True

    • B. 

      False

  • 18. 
    Advantages of partnership vs corporation: it is a part partnership, the owners share the profits and losses of the business, and their personal resources can be called on to pay the obligations of the business.
    • A. 

      True

    • B. 

      False

  • 19. 
    Investors
    • A. 

      Stockholders, who invest or may invest in a business and acquire a part ownership in it are interested in its past success and its potential earnings.

    • B. 

      Most companies borrow money for both long and short-term operating needs. those who lend money or deliver goods and services before being paid, are interested mainly in whether a company will have the cash to pay interest charges and to repay the debts at the appropriate time.

  • 20. 
    Creditors
    • A. 

      Stockholders, who invest or may invest in a business and acquire a part ownership in it are interested in its past success and its potential earnings.

    • B. 

      Most companies borrow money for both long and short-term operating needs. those who lend money or deliver goods and services before being paid, are interested mainly in whether a company will have the cash to pay interest charges and to repay the debts at the appropriate time.

  • 21. 
    Recognition
    • A. 

      The determination of when a business transaction should not be recorded

    • B. 

      The determination of when a business transaction should be recorded

    • C. 

      The simplest form of account, which is used to analyze transactions

  • 22. 
    Journal entry is a journal notation that records multiple transactions
    • A. 

      True

    • B. 

      False

  • 23. 
    General journal
    • A. 

      A book or file that contains all of a companys accounts arranged in the order of the chart of accounts.

    • B. 

      The practice of recording transactions at cost

    • C. 

      The simplest and most flexible type of journal

  • 24. 
    Debit is on the right side of an account
    • A. 

      True

    • B. 

      False

  • 25. 
    Credit is on the right side of an account
    • A. 

      True

    • B. 

      False