Copyright

Accounting Basics for Entrepreneurs Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. With accounting software, Bob is able to complete five times as many transactions as he can manually; this supports the explanation of technology as

Question 2 2. Dan's organization stores their software applications and other information on a group of external computers known as virtual network servers. Employees often refer to this storage space as the _____.

Question 3 3. _____ and technology go hand in hand.

Question 4 4. What has technology done to the accounting process?

Question 5 5. In our ever-evolving world, there have been many advances that have made accounting processes easier to complete. Which of the following is an example of man-made technology that has impacted the accounting industry throughout history?

Page 2

Question 6 6. What is the final step of the accounting cycle?

Question 7 7. How is the general journal different from the general ledger?

Question 8 8. What is the first step in the accounting cycle?

Question 9 9. What types of reports are created during the accounting cycle for the use of management?

Question 10 10. How do you know when an account is in balance?

Page 3

Question 11 11. What does ALOE stand for?

Question 12 12. What does the term 'accounting' mean?

Question 13 13. What is the formula for the basic accounting equation?

Question 14 14. Why is accounting important to business?

Question 15 15. Which of the following is NOT a financial statement?

Page 4

Question 16 16. Monica reads in the newspaper that in the year ended December 31, 2015, Profit For Two Inc made $1 million profit. Monica wants to confirm for herself that this is really the case. What financial statement of Profit For Two Inc should Monica read to confirm the newspaper report?

Question 17 17. What statement(s) do external and internal users of accounting information rely on?

Question 18 18. Which of the following is an example of external users of accounting information?

Question 19 19. Adam wants to find out the assets and liabilities of a company. Which financial statement should Adam read to find out this information?

Question 20 20. Djokovic is the Chief Information Officer for InfoTech Inc. Murray is the Chief Lending Officer at the Bank where InfoTech has a large bank loan. Which statement is true for both Djokovic and Murray, in connection with InfoTech?

Page 5

Question 21 21. What are financial statements?

Question 22 22. Why might potential investors and creditors look at a company's financial statements?

Question 23 23. Why is a Balance Sheet an important financial statement?

Question 24 24. If an investor wanted to see how much money was maintained and reinvested in the company, which financial statement would give that information?

Question 25 25. What is the difference between a Statement of Cash Flows and Income Statement?

Page 6

Question 26 26. Michael, the majority shareholder of a company, decided to produce the company's balance sheet whose cash balance included the cash in his own bank account. Would Michael be allowed to do this by GAAP?

Question 27 27. Which of the following is an example of how publicly-traded companies can apply the principle of conservatism with their financial statements?

Question 28 28. GAAP sets the standards for the creation of what?

Question 29 29. How many basic accounting principles make up GAAP?

Question 30 30. Which company, listed on the New York Stock Exchange would definitely be in breach of the Going Concern Principle?

Accounting Basics for Entrepreneurs Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Business Management: Help & Review  /  Business Courses
Support