Introduction To Accounting Final Financial Multiple Choice

drawee – a person or concern, usually a bank, that has been ordered to make a payment of a check or draft
Adjusting entries – An entry of assets and liabilities not initially included in finances
Business Entity Principle – Business is separated from its owners. Revenues and expenses are kept apart from the personal accounts.
Personal test – Cannot be expense personal items
Lease – A written agreement which grants to the lessee the right to use q particular asset for the specified period of yime in return for periodic payment to the lessor.
Double-entry accounting – Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit
Elements of the financial statement – Assets
Liability
Equity
Investment by owners
Distribution to owners
Comprehensive income
Revenue
Expense
Gain
Loss
Stock and Capital – financing provided by owners; stock is reported at PAR VALUE; ie. $500 (5,000 shares x $.10 par)
The function of bile is to ______ fat.
F.U.T.A. – Federal Unemployment Tax Act.
stock – shares into which the owners' equity of a corporation is divided.
accounting system – a planned process for providing information that will be useful to management
Bond Issue Price – The present value of the interest payments and face value.
The functiоn оf bile is tо ______ fаt.
average assets – (ending assets+beginning assets)/2
poacher – one who goes to another person's land to steal
Account – A standardized format used to accumulate data about each item reported on financial statements.
these procedures ensure the accurate and consistent application of policies – Administrative controls
Quick ratio – a measure of the relationship between short-term assets and current liabilities.

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