Accounting

Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its operations.  If the company records the cash sale of food for $18, which is the correct entry?

• Cash Cr., $18; Food Revenue Dr., $18

• Cash Dr., $18; Food Revenue Dr., $18

• Cash Dr., $18; Food Revenue Cr., $18

• Cash Cr., $18; Food Revenue Cr., $18

Which of the following is a primary purpose of accounting in a business?

• To track employee performance

• To manage customer relationships

• To provide financial information for decision-making

• To design marketing strategies

In accounting, what does the term 'liability' refer to?

• Assets owned by the company

• Expenses incurred by the company

• Obligations the company owes to others

• Revenue generated by the company

What is the accounting equation?

• Assets = Liabilities + Equity

• Assets = Revenue - Expenses

• Liabilities = Assets + Equity

• Equity = Assets - Liabilities

Which financial statement provides information about a company's financial performance over a specific period?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Statement of Retained Earnings

What is the role of a balance sheet in accounting?

• To show the company's profitability

• To display the company's financial position at a specific point in time

• To track cash inflows and outflows

• To summarize the company's revenue and expenses

Which of the following is considered an asset in accounting?

• Accounts Payable

• Inventory

• Bank Loan

• Owner's Equity

What does GAAP stand for in accounting?

• Generally Accepted Accounting Principles

• Global Accounting and Auditing Practices

• General Accounting and Auditing Procedures

• Government Approved Accounting Policies

In double-entry accounting, every transaction affects how many accounts?

• One

• Two

• Three

• Four

Which of the following is an example of a fixed asset?

• Cash

• Accounts Receivable

• Office Building

• Inventory