Test Introduction TO Financial Accounting Fundamentals Final EXAM Review Quizlet PDF

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3/9/2020

Test: INTRODUCTION TO FINANCIAL ACCOUNTING FUNDAMENTALS FINAL EXAM REVIEW | Quizlet

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5 Written questions 1. A signature or stamp on the back of a check transferring ownership

2. A financial statement showing the revenue and expenses for a fiscal period.

3. Agency official may enter a business that are open to the public without consent or warrant and act on observation

4. Requires the definition and consistent use of the same accounting period

5. A person who believes that he will be paid back the money that he loaned

5 Matching questions 1.

Cash payments journal

2.

Rate of return on Net sales

3.

Cash Basis Accounting

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A. A formula stating that a corporation's assets equal the sum of its liabilities plus shareholders' equity.

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Test: INTRODUCTION TO FINANCIAL ACCOUNTING FUNDAMENTALS FINAL EXAM REVIEW | Quizlet

4.

Balance-Column Ledger Account

5.

Balance Sheet Equation

B. indicates the portion of business sales that are kept as profit. a high rate means a more profitable company Net income / net sales C. An accounting record which classifies and summarizes all cash paid to other entities during a particular reporting period. -cheques issued -Bank debit memo D. An account with debit and credit columns for recording entries and a third column for showing the balance of the account after each entry is posted.

E. an accounting practice in which revenue is not recognized in the accounting records until received and in which expenses are not recognized until paid

5 Multiple choice questions 1. The total value of one's assets minus the total value of one's debt A. Personal Net Worth B. ethical dilemma C. Current Liabilities D. Purchases journal

2. The exchange of goods, services and money between members of the public and businesses. A. Fixed Assets B. Cash control C. Journalizing D. transactions

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Test: INTRODUCTION TO FINANCIAL ACCOUNTING FUNDAMENTALS FINAL EXAM REVIEW | Quizlet

3. The money the owner takes out of the business for personal use. A. Journalizing B. transactions C. Net Loss D. Drawings

4. The accounting system in which each transaction affects at least two accounts and has at least one debit and one credit. The double-entry system merely records the dual effect of a transaction on the accounting equation. A transaction is not recorded twice; it is recorded once, with a dual effect.

A. Double-Entry Accounting B. Cash Basis Accounting C. Principle of Objectivity D. Materiality Principle

5. A type of accelerated depreciation that reflects depreciation expense for each year based on a constant percentage of a declining balance equal to the remain (2/useful life) / (cost - accumulated depreciation) A. Opening Entry B. declining balance depreciation C. Straightline depreciation D. Business Entity Principle

5 True/False questions 1. a formal financial statement which summarizes all of the changes in owner's equity during a specific period of time

→posting references True False 2. journal entries used to prepare temporary accounts for a new fiscal period →Closing entries True False

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Test: INTRODUCTION TO FINANCIAL ACCOUNTING FUNDAMENTALS FINAL EXAM REVIEW | Quizlet

3. Business should apply the same accounting choices and methods year after year →The Matching Principle True False 4. Revenue is recognized at the time the revenue is definitely earned →The Revenue Recognition Principle True False 5. a proof of the equality of debits and credits in a general ledger →Trial Balance True False

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