Financial Accounting Exam Review

Manufacturing or Producing Business

• Sells a service to the public

• Buys goods and resells them at a higher price for profit

• Carry on activities to meet social needs and not for a financial profit

•  buys raw materials, converts them into a new product, and sells these producers to earn a profit

Which of the following is NOT Included in The Accounting Cycle

• Journal entries posted to ledger accounts

• Journal entries are reflected in the balance sheet

• Formal financial statements prepared

• Post-closing trial balance prepared

Sole Proprietorship

• The owner works alone or others work for them

• Owned by shareholders and it has its own separate existence with separate rights and obligations

• More than one person shares in the ownership/operation of a business

Partnership

• Owned by shareholders and it has its own separate existence with separate rights and obligations

• More than one person shares in the ownership/operation of a business

• The owner works alone or others work for them

The first step of the accounting cycle is ...

• Transactions recorded in journal

• Transactions occur

• Journal entries posted to ledger accounts

• Worksheet prepared

Service Buisness

• Buys goods and resells them at a higher price for profit

• buys raw materials, converts them into a new product, and sells these producers to earn a profit

• Sells a service to the public

• Hits the griddy

Accounting is a system of dealing with _______ data that provides information for decision making

Merchandising Business

• Buys goods and resells them at a higher price for profit

• buys raw materials, converts them into a new product, and sells these producers to earn a profit

• Carry on activities to meet social needs and not for a financial profit

• Sells a service to the public

Equation Analysis Sheet:

• Identify and make changes to assests

• It's a tool to show the individual transactions and the new financial position resulting from each transaction.

• Taking off a Trial Balance is a simple procedure used to find out if the ledger is in balance

• The new accounts in equity have one main purpose

What is 1 of the 5 Main activities

• Gathering financial information

• Creating work for employees

• Generating funds for the buisness