Accounting Flashcard - Unit 5

Front

What is the primary purpose of a profit and loss (P&L) statement?

Back

To display the company's revenue and expenses over a period of time

Front

Which of the following affects business revenue? Employee satisfaction, Supply and demand, Company logo design, Office location

Back

Supply and demand

Front

What is the formula for calculating profit?

Back

Revenue - Expenses

Front

Why is profit motive important for businesses?

Back

It drives innovation and efficiency

Front

Which economic system emphasizes private enterprise and the U.S. economy? Options: Command economy, Traditional economy, Market economy, Mixed economy

Back

Market economy

Front

What does the term "Net Income" refer to?

Back

Total revenue after expenses and taxes

Front

Which of the following is considered an operating expense? Interest expense, Cost of goods sold, Depreciation, Revenue

Back

Depreciation

Front

How can a company increase its profits?

Back

By reducing costs and increasing sales

Front

What is the primary goal of accounting?

Back

To provide financial information for decision-making

Front

Which accounting method records transactions when cash changes hands?

Back

Cash accounting method