Test 4- Knowledge Flashcard

Front

The Happy Toys Company Board of Directors has decided to give some of its profits from the year to its shareholders. It has decided to pay a:

Back

dividend.

Front

Which represents the inflow of funds into a business? Options: cash, debt, expenses, liabilities

Back

cash

Front

The purpose of having accounting standards is to:

Back

create uniformity between financial statements.

Front

The finance activity regarding how to source income is called:

Back

acquiring funds.

Front

The accounting document that shows a business’s revenue and expenses is a/an:

Back

income statement.

Front

Isabelle owns a home cleaning business. She invoices her customer and records the transaction as soon as she finishes each home cleaning. Which type of accounting method is Isabelle using?

Back

accrual.

Front

Kathy wants to know whether her boutique made or lost money this month. The financial document she should view is her:

Back

income statement.

Front

Cash is an example of:

Back

assets.

Front

Cliff wants to know how much money his business made this year. He wants to know his business’s: margin, cash flow, end result, bottom line.

Back

bottom line.

Front

A change in products will have the most direct impact on a business’s:

Back

operations.