17.1/17.2

Question 1

Accounting

Answer 1

The system of recording business transactions & analyzing,verifying, & reporting the results

Question 2

GAAP

Answer 2

Rules standard & practices that businesses follow to record & report financials info

Question 3

Audit

Answer 3

A review of the financial statements of a business’s business and the accounting practices that were used to produce them.

Question 4

Fiscal period

Answer 4

The period of time for which a business summarizes accounting information and prepares financial statements

Question 5

Cash basis

Answer 5

Recognizes revenue when it is reduced and expense when they are paid.

Question 6

Accrual basis

Answer 6

Accounting records revenues and expenses when they occur

Question 7

Sale on account

Answer 7

is a transaction for which cash for the sale will be receive at a later date l.

Question 8

Purchase on account

Answer 8

A transaction for which merchandise purchased will be paid to the vendor at a later date.

Question 9

Account

Answer 9

An individual record that summarizes info for a single category such as cash or sales.

Question 10

Chart on accounts

Answer 10

A lost it all account in the business

Question 11

Double entry accounting

Answer 11

Recording the debit and credit parts if a transaction

Question 12

Journal

Answer 12

A form used to record business transactions in chronological order

Question 13

Journalizing

Answer 13

The process of recording business transaction in a journal

Question 14

Leader

Answer 14

A group of accounts

Question 15

Posting

Answer 15

The transferring of information from the journals to the ledger

Question 16

Stakeholder

Answer 16

People with interest in the business updates about the status of the business

Question 17

Income statement

Answer 17

Reports the revenue and expenses of a business for a specific time period and shows a net income or net loss

Question 18

Financial ratio

Answer 18

Evaluate a business overall financial condition by showing the relationships between certain figures on financial statements

Question 19

Working capital

Answer 19

The amount of money a business has after the liabilities are paid

Question 20

Current ratio

Answer 20

Show the relationship of assets to liabilities

Question 21

Debt ratio

Answer 21

Shows the percentage of dollars owned as compared to assets owned

Question 22

Net profit ratio

Answer 22

Illustrâtes how much profit is generated per dollar of sales