Glencoe Unit 1 Accounting Test

Ava started a business all by herself. This type of business is known as a(n) _______.

• Sole Proprietorship

• Partnership

• Corporation

Lily, Henry, and Daniel are running a small business. They are preparing an accounting report. What is the term for the time period covered by their accounting report?

• Accounting Period

• Financial Accounting

• GAAP

Daniel and Priya decided to start a business together. This type of business is known as a(n) _______.

• Sole Proprietorship

• Partnership

• Corporation

Charlotte started a small business. If she spends more than she receives from her business, she is operating at a

• Profit

• Loss

• Break-even

A(n) business is concerned with the process of recording and reporting financial information.

• Financial Accounting

• Managerial Accounting

• GAAP

Olivia has decided to start her own bakery. She is willing to take the risks associated with running a business. What role is Olivia taking on?

• Entrepreneur

• Manager

• Investor

Zoe, Benjamin, and Emma are starting a small business. They need to keep track of their finances for potential investors and banks. This type of accounting, primarily for external users of accounting information, is called:

• Financial Accounting

• Managerial Accounting

• GAAP

Aria, Avery, and Zoe are studying for their accounting exam. They come across a term 'GAAP'. Avery remembers that it refers to

• Financial Accounting

• Managerial Accounting

• Generally Accepted Accounting Principles

Michael started a small business and he invested some money into it. This money is referred to as

• Capital

• Profit

• Revenue

Ava started a lemonade stand. She spent some money to buy lemons, sugar, and cups. At the end of the day, the money she earned over and above the amount she spent to keep the lemonade stand operating is called

• Profit

• Loss

• Break-even