Accounting Basics

Which type of class does an Accounting class most closely resemble?

• Math

• History

• Foreign Language

• Engineering

Accounting is called the language of:

• Numbers

• Equations

• Accountants

• Business

Which of the following tasks does a bookkeeper perform?

• Analyze financial statements

• Payroll

• Pay Bills

• Day-to-Day accounting functions

If a business prepares 'Annual' financial statements, how long is that period?

• Weekly

• 3 Months

• 6 Months

• 12 Months

If a business prepares 'Quarterly' financial statements, how long is that period?

• Weekly

• Monthly

• 3 Months

• 12 Months

Which is the financial statement that shows how much a business owns, how much a business owes, and what a business is worth at any point in time?

• Balance Sheet

• Income Statement

• Statement of Cash Flows

Which is the financial statement that shows how much a business earned in sales, how much it spent, and how much profit the business earned?

• Balance Sheet

• Income Statement

• Statement of Cash Flows

Which statement shows all of the money coming into and out of a business, and shows how much actual cash a business has generated?

• Balance Sheet

• Income Statement

• Statement of Cash Flows

What is a 'Chart of Accounts'?

• A list of all assets and liabilities

• A list of all revenue and expenses

• A list of all business accounts

• A list of all financial transactions

What is the most important thing to remember about Accounting?

• Debits and Credits

• Revenue and Expenses

• The Accounting Principle

• The Accounting Equation