Exam 1: Modules 1-4

Question 1

Accounting

Answer 1

The language of business.

Question 2

Accounting

Answer 2

Providing useful information to someone so they can make a good decision about your company.

Question 3

Managerial Accounting

Answer 3

Taking information about company and giving it to someone INSIDE company

Question 4

Financial Accounting

Answer 4

Taking information about company and giving it to someone OUTSIDE company (to banks, investors, etc.)

Question 5

Where you’ll use accounting terms

Answer 5

Everywhere in business

Question 6

Which type of accounting is based solely on Rules

Answer 6

Financial accounting

Question 7

T/F: All Countries use GAAP (Generally accepted accounting principles)

Answer 7

True

Question 8

Financial statement that includes Assets, Liability, and Equity.

Answer 8

Balance Sheet

Question 9

Net Income is calculated by

Answer 9

Revenue - Expenses = Net Income

Question 10

Financial statement that includes Revenue, Expenses, and Net Income

Answer 10

Income Statement

Question 11

Revenue

Answer 11

What you bring into the company. Your income from Goods and Services

Question 12

Examples of Expenses

Answer 12

Utilities, Rent, Advertising, Marketing

Question 13

Expenses

Answer 13

Costs a business incurs to produce its business operations

Question 14

Assets

Answer 14

Things we own that will continue to give us benefit

Question 15

Examples of liabilities

Answer 15

Trucks, equipment

Question 16

Equity is calculated by

Answer 16

Assets - liabilities = Equity

Question 17

Common stock

Answer 17

How much owners give to the company

Question 18

Equity financial statment is made up of what 2 things

Answer 18

Common stock and Retained Earnings

Question 19

Cash flow statment

Answer 19

How we got the money and how we spend it.

Question 20

Primary accounts on a Balance sheet

Answer 20

Assets, Liabilities, and Equity

Question 21

Primary accounts on an Income Statement

Answer 21

Revenue and Expenses

Question 22

Primary accounts on the Equity Statement

Answer 22

Common Stock and Retained earnings