Mastering Company Purchases and Expenses

Which accounting method provides a more realistic idea of income and expenses during a period of time?

Which accounting method does not provide any awareness of cash flow?

If you invoice a client for $5,000 in December of 2017 and receive the payment in January of 2018, which accounting method would record that transaction as a part of your 2017 income?

According to the American Accounting Association (AAA), accounting is defined as:

What is the purpose of financial statements?

What is considered a transaction in accounting?

Which step involves transforming resources and purchased operating means into finished products/services?

What type of expenses are recorded as costs in the income statement?

What represents the means that a company owns to conduct its business?

What brings a double change in the financial position of a business?

Which financial statement shows the financial position of a company at a specific point in time?

What is the basis for accounting that records revenues and expenses when they are earned, regardless of when the money is actually received or paid?

Which method of accounting recognizes revenues when cash is received and expenses when they are paid?

What is the master book where transactions are recorded in accounting?

Which of the following is an example of a non-monetary event in accounting?

When a company sells a car and receives the money immediately, it is an example of a __________ transaction.

Which of the following is an example of an internal transaction?

What is an account receivable?

Which of the following features must a monetary event have to be considered a business transaction?

What is the difference between a quantitative change and a qualitative change in a business transaction?

How can a company gather operating resources to run its business?

How can shareholders receive their money back from a company?