Special terms in accounting

Which term refers to the costs incurred by a business in order to generate revenue?

• Equity
• Expenses
• Revenue
• Depreciation

Which term represents the income generated by a business from its primary activities?

• Revenue
• Assets
• Equity
• Liabilities

What does GAAP stand for in accounting?

• Generally Accepted Accounting Principles
• Good Accounting and Auditing Practices
• Global Accounting Assessment Program
• General Accounting and Auditing Procedures

Which term represents resources owned by a business that have economic value and can be used to generate revenue?

• Liabilities
• Revenue
• Equity
• Assets

What are obligations or debts that a business owes to external parties?

• Revenue
• Equity
• Liabilities
• Assets

Which accounting method recognizes revenue when it is earned and expenses when they are incurred?

• Cash flow statement
• Trial balance
• GAAP
• Accrual basis accounting

What is the concept that represents the allocation of the cost of a long-term asset over its useful life?

• Depreciation
• Expenses
• Equity
• Revenue

Which financial statement shows the inflows and outflows of cash from operating, investing, and financing activities?

• Assets
• Cash flow statement
• Liabilities
• Equity

What is a list of all the accounts in the general ledger along with their respective debit or credit balances?

• Cash flow statement
• Accrual basis accounting
• GAAP
• Trial balance

What represents the owner's claim on the assets of a business after all liabilities have been paid off?

• Assets
• Equity
• Revenue
• Liabilities