Basic Accounting Principles (icev)

Income statements are used to help determine __________.

• An accountant’s capabilities

• Credit limits

• Employee pay

• Prices of goods and/or services

How many steps are in the business operating cycle?

• 5

• 9

• 12

• 18

Accounting is simply the process used to figure out how much money a business made during a certain time period.

• True

• False

What are the accounting rules used to prepare, present and report financial statements called?

• Financial Account Management Techniques

• Financial Accounting Standards

• Generally Accepted Accounting Principles

• Standard Business Financial Practices

The Financial Accounting Standards Board is the government agency regulating the accounting industry.

• True

• False

How often should a business calculate profitability and review financial statements?

• Weekly

• Monthly

• Quarterly

• Annually

__________ are items of value your company owns.

• Assets

• Liabilities

• Profits

• Revenues

__________ are any debts or obligations owed by the company.

• Assets

• Liabilities

• Profits

• Revenues

A(n) __________ is a summary of a company’s profit or loss during any one given period of time.

• Balance sheet

• Fixed asset statement

• Income statement

• Subledger

It is often beneficial for a business owner to use business accounts and personal accounts interchangeably.

• True

• False