Accounting – Chapter 1 Test – Flashcards
Unlock all answers in this set
Unlock answersquestion
customers
answer
external
question
suppliers
answer
external
question
brokers
answer
external
question
business press
answer
external
question
managers
answer
internal
question
district attorney
answer
external
question
shareholders
answer
external
question
lenders
answer
external
question
controllers
answer
internal
question
FBI and IRS
answer
external
question
consumer group
answer
external
question
sales clerks
answer
internal
question
assets
answer
balance sheet
question
cash from operating activities
answer
cash flows
question
dividends
answer
retained earnings
question
equipment
answer
balance sheet
question
expenses
answer
income statement
question
liabilities
answer
balance sheet
question
net decrease
answer
cash flows
question
revenues
answer
income statement
question
total liabilities and equities
answer
balance sheet
question
land
answer
asset
question
common stock
answer
equity
question
equipment
answer
asset
question
accounts payable
answer
liability
question
accounts receivable
answer
asset
question
internal auditing
answer
managerial accounting
question
external auditing
answer
financial accounting
question
cost accounting
answer
managerial accounting
question
budgeting
answer
managerial
question
investigating violations of tax laws
answer
tax accounting
question
planning transactions to minimize taxes
answer
tax accounting
question
preparing external financial statements
answer
financial
question
reviewing reports for SEC compliance
answer
financial
question
an examination of an organization's accounting system and records that adds credibility to financial statements
answer
Audit
question
amount a business earns in excess of all expenses and costs associated with its sales and revenues
answer
net income
question
an accounting area that includes planning future transactions to minimize taxes paid
answer
tax accounting
question
accounting professions who provide services to many clients
answer
public clients
question
principles that determine whether an action is right or wrong
answer
ethics
question
Micah and Nathan own financial services, a financial service provider
answer
they are a corporation
question
riley and kay own Speedy Packages, a courier service. both are personably liable for the debts of the business
answer
partnership
question
IBC Services does not have separate legal existence apart from the one person who owns it
answer
sole proprietorship
question
Trent Company is owned by Trent Malone, who is personally liable for the company's debts
answer
sole proprietorship
question
ownership of Zander Company is divided into 1,000 shares of stock
answer
corporation
question
Physic Products does not pay income taxes and has one owner
answer
sole proprietorship
question
AJ Company pays its own income taxes and has two owners
answer
corporation
question
a company reports detailed behind financial statements that would impact users' decisions
answer
full disclosure principle
question
financial statements reflect the assumptions that the business continues operating
answer
going-concern assumption
question
a company records the expenses incurred to generate the revenues reported
answer
matching principle (expense recognition)
question
derived from long-used and generally accepted accounting practices
answer
General accounting principle
question
every business is accounted for separately from its owners
answer
business entity assumption
question
revenue is recored only when the earnings process is complete
answer
revenue recognition principle
question
information is based on actual costs incurred in transactions
answer
cost principle
