- _ It is a process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information.
Accounting
- _ It is a financial statement that shows the resources owned by the business, the obligations to pay, and the equity of the owner.
Statement of Financial Position
- _ These are present obligations of the entity to pay cash or provide goods or services in the future.
Liabilities
- _ These are long-lived assets that are used in the operations of the business.
Property, Plant and Equipment
- _ It is the estimated amount of receivables that may no longer be collected.
Allowance for Doubtful Accounts
- These are resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
Asset
- _ It is the format of the Statement of Financial Position that is presented in vertical form.
Account Form
- _ It is a financial statement that shows the financial performance of the business.
Statement of Comprehensive Income
- _ These are nominal accounts that have zero beginning balances in every accounting period.
Temporary Accounts
- _ Which of the following statements is TRUE about net income?
A. Net income occurs when the total expenses exceed the total income.
B. Net income occurs when the total income exceeds the total expenses.
C. Net income is the same as net loss.
D. Net income is the result of ineffective management.
B. Net income occurs when the total income exceeds the total expenses.
- _ It is the income earned by the business from its normal operations.
REVENUE
- _ It is the expense incurred in purchasing products to be sold.
Cost of Sales / Cost of Goods Sold
- _ It is the expense incurred due to the wear and tear of property, plant and equipment.
Depreciation Expense
- _ The following are common examples of expenses, EXCEPT:
A. Cost of Sales
B. Prepaid Expenses
C. Rent Expense
D. Salaries Expense
B. Prepaid Expenses
- _ It is the method of preparing the Statement of Comprehensive Income used by merchandising businesses.
MULTI-STEP METHOD
- _ It is the amount of goods bought during the period.
Purchases / Net Purchases
- _ It is a financial statement that shows the changes in the owner’s interest in the business.
Statement of Changes in Equity
- _ This form of business organization is defined as a contract where two or more persons bind themselves to contribute money, property, or industry to a common fund, to divide the profits among themselves.
PARTNERSHIP
- _ This type of partner has unlimited liability, meaning he or she is liable to the extent of his or her assets.
General Partner
- In the eyes of the law, a corporation is viewed as an _, meaning it has rights, powers, and attributes of incorporation.
Human Being
- _ Which of the following is NOT a disadvantage of a sole proprietorship?
A. Bear losses and risks alone
B. Disagreement and resignation
C. Lack of continuity
D. Unlimited liability
B. Disagreement and Resignation
- The owner of a corporation is called _.
SHAREHOLDERS
- _ It is a business organization owned by one person.
SOLE PROPRIETORSHIP
- _ This is the very first investment of the owner in the company.
CAPITAL, Beginning
