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Question 1

Which financial statement shows a company's assets, liabilities, and equity at a specific point in time?

Accepted Answer

2

Question 2

Accounting is often called the language of business.

Accepted Answer

o

Question 3

What is the main purpose of accounting?

Accepted Answer

1

Question 4

The process of checking accounts for accuracy is called ________.

Accepted Answer

auditing

Question 5

Which of the following is considered an asset?

Accepted Answer

1

Question 6

A liability is something a company owns.

Accepted Answer

x

Question 7

What does CPA stand for in the field of accounting?

Accepted Answer

certified public accountant

Question 8

Which of the following best describes revenue?

Accepted Answer

1

Question 9

The double-entry system in accounting means every transaction affects at least two accounts.

Accepted Answer

o

Question 10

What is the term for the list of all accounts used by a business?

Accepted Answer

chart of accounts

Question 11

Which accounting principle requires that expenses be matched with related revenues?

Accepted Answer

0

Question 12

Financial statements are prepared only for internal use by a company.

Accepted Answer

x

Question 13

What is the main job of a bookkeeper?

Accepted Answer

1

Question 14

Which document summarizes a company's revenues and expenses over a period of time?

Accepted Answer

1

Question 15

GAAP stands for Generally Accepted Accounting Principles.

Accepted Answer

o

Question 16

The person responsible for examining a company's financial statements for accuracy is called an ________.

Accepted Answer

auditor

Question 17

Which of the following is NOT a basic element of accounting?

Accepted Answer

3

Question 18

Depreciation refers to the decrease in value of an asset over time.

Accepted Answer

o

Question 19

What is the accounting equation?

Accepted Answer

assets = liabilities + equity

Question 20

Which of the following best describes a liability?

Accepted Answer

2