BE 4.0 Test Review

__________________: a method of accounting that records transactions at the time they occur.

• A. accountant

• B. accural

• C. finance

________________: a process or series of steps that businesses complete to maintain their financial records effectively.

• accounting cycle

• assets

• accounting standards

________________: rules that accountants must follow when preparing financial statements.

• accounting cycle

• assets

• accounting standards

________________: finance activity involving making decisions about a firm’s investments.

• acquisition of funds

• administration of assets

• statement of owner's equity

________________: a financial summary of recording as to when, where, and how much money will flow into and out of a business.

• balance sheet

• cash flow statement

• owner's equity

______________: the amount an owner has invested in the business plus or minus profits and losses.

• A. balance sheet

• B. cash flow statement

• C. owner's equity

7. _______________: a sum of money paid to an investor or stockholder as earnings on an investment.

• A. capital investment decisions

• B. dividends

• C. financial statement

______________: a financial statement that captures the financial condition of the business at that particular moment.

• balance sheet

• cash flow statement

• owner's equity

The finance activity regarding how to source income is called:

• accounting.

• acquiring funds.

• administering assets.

• making capital investment decisions.

Which represents the inflow of funds into a business?

• cash

• debt

• expenses

• liabilities