30 Questions
Which side of a standard account is known as the debit side?
The left side
What does the term 'demographics' refer to?
The study of human populations
What is depreciation?
The loss in value of a fixed asset
What is a drawing account?
An account used for recording owner's withdrawals
What does the earnings valuation approach focus on?
Estimating the projected future income of a business
What is the right side of a standard account known as?
The bottom side
What does the term 'demographics' study?
Human populations
What is depreciation a result of?
The loss in value of a fixed asset
What is recorded in a drawing account?
Owner's withdrawals
What does the earnings valuation approach estimate?
Projected future income of a business
Which of the following accurately defines the accounting equation?
Assets = Liabilities + Owner's Equity
What does the term 'accounts payable' refer to?
An unwritten promise to pay creditors for property purchased on credit
What is the purpose of accrual accounting?
To record expenses and income regardless of when they are paid or collected
What is the definition of 'accrued expense'?
An expense incurred in operating a business but not yet paid
What is the definition of 'accrued income'?
Income earned during an accounting period but not yet received
What does the term 'acquisition' refer to?
A company that is inherited or bought
What is the purpose of advertising in business?
To make the public aware of the business's services or commodities for sale
What does the term 'age of accounts receivable' measure?
The average time required to collect receivables
What does the Age Discrimination in Employment Act require?
Employers to treat applicants and employees equally regardless of age
What does the term 'age of inventory' measure?
The average time required to sell inventory
Which one of the following is a definition of balance sheet?
A formal financial statement illustrating the assets, liabilities, and owner’s equity of a business as of a specific date.
Which one of the following is a definition of branding?
A method of applying verbal and/or symbolic means to identify a product and/or service.
Which one of the following is a definition of break-even analysis?
The point at which total sales revenue equals total operating costs.
Which one of the following is a definition of cash flow statement?
A financial report showing a firm’s sources of cash as well as its uses of cash.
Which one of the following is a definition of business interruption insurance?
Insurance that protects companies during the period necessary to restore property damaged by an insured peril.
Which one of the following is a definition of business plan?
A summary of how a business owner, manager, or entrepreneur intends to organize the business endeavor and implement the activities necessary for the venture to succeed.
Which one of the following is a definition of cash basis accounting?
An accounting practice in which revenue is not recognized in the accounting records until received and in which expenses are not recognized until paid.
Which one of the following is a definition of casualty insurance?
Insurance that provides monetary benefits to a business that has experienced an unforeseen peril, such as flood, fire, etc.
Which one of the following is a definition of closed end credit?
Balance of costly goods paid for in small monthly (fractional) payments over a period of time.
Which one of the following is a definition of controlling (evaluating)?
A process of measuring organizational and individual performance with predetermined standards or expected results.
Test your knowledge of accounting basics with this quiz! From understanding the accounting equation to identifying accounts payable, this quiz will challenge your understanding of key concepts in the language of business.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
