Podcast
Questions and Answers
What method of accounting is universally used in business today?
What method of accounting is universally used in business today?
- Double-entry accounting
- Accrual accounting (correct)
- Fund accounting
- Cash accounting
Where are transactions recorded as they happen in a business?
Where are transactions recorded as they happen in a business?
- Accounting journals and ledgers (correct)
- Income statement
- Balance sheet
- Checkbook
What does the income statement summarize?
What does the income statement summarize?
- Cash inflows and outflows
- Net worth of a business
- Incomes and expenses for a period of time (correct)
- Assets and liabilities
Which financial statement shows how much cash came in and where it came from?
Which financial statement shows how much cash came in and where it came from?
Which accounting method recognizes transactions only when cash is exchanged?
Which accounting method recognizes transactions only when cash is exchanged?
What is the process through which the financial situation is recorded in accounting?
What is the process through which the financial situation is recorded in accounting?
What is the main difference between operating, investing, and financing cash flows?
What is the main difference between operating, investing, and financing cash flows?
What is the accounting equation that must always hold true?
What is the accounting equation that must always hold true?
What is the cash flow available to make investment decisions after operations and debt repayments are taken care of?
What is the cash flow available to make investment decisions after operations and debt repayments are taken care of?
What represents a snapshot of assets, debts, and equity at a specific point in time?
What represents a snapshot of assets, debts, and equity at a specific point in time?
What do assets, liabilities, and equity represent in the accounting equation?
What do assets, liabilities, and equity represent in the accounting equation?
Which financing option is considered when the accounting equation is in balance?
Which financing option is considered when the accounting equation is in balance?
