Exam 1: Business, Accounting, and You

The correct order for the preparation of financial statements is: 1. Statement of Cash Flows 2. Income Statement 3. Balance Sheet 4. Statement of Retained Earnings

The Income Statement details how cash changed over an accounting period or cycle.

Which of the following is considered an asset?

A Statement of Cash Flows is usually prepared:

A business may be either a for-profit business or a not-for-profit business.

A transaction is a business event that does NOT have an impact on the finances of a company.

The Statement of Cash Flows is used to report sources and uses of cash for a specific date.

Which of the following impacts the value of an item to its owner?

An increase in revenues would have which of the following effects on the accounting equation?

The method of accounting that recognizes a transaction when cash is received or paid is:

How would the purchase of a computer on account affect the accounting equation?

Neil owns a sporting goods store. In his accounting records, he included his personal computer and all of his personal sporting gear. Neil is violating what principle of accounting?

Which of the following types of organizations would produce goods?

What do we call amounts of money borrowed from lenders?

Which of the following would be reported in the Investing Activities section of the Statement of Cash Flows?

Which accounting concept or principle specifically states that we should record transactions that can be verified?

Which of the following is a TRUE statement?

The Income Statement is used to report:

A hybrid business entity with characteristics of both a corporation and a partnership is called:

Assets consist of revenues, expenses, and dividends.