BUS1010 - Exam 4 Review questions and
answers Graded A+
What task would be a part of the first step in the accounting process? -
✅✅gathering all invoices and receipts (collecting)
The ________ provides a summary of a company's financial condition on a given
date. - ✅✅balance sheet
A company's insurance costs, supplies, and utilities are all ________ expenses. -
✅✅administrative
The ________ shows a firm's revenues and expenses for a particular time period
and the resulting profit or loss. - ✅✅income statement
________ ratios determine how well a firm can pay its liabilities as they come
due. - ✅✅Liquidity
When bookkeepers put journal entries into categories in a ledger, they are in
which step of the accounting process? - ✅✅classification
Coletta is preparing the balance sheet for Zebra Athletics. She is struggling to
determine how to classify the stocks her company owns prior to running the
statement and asks for your help. You tell her that stocks are classified as -
✅✅a current asset.
, The statement "assets = liabilities + owners' equity" is called the -
✅✅accounting equation.
Second Harvest Tractors sold 10,000 shares of new stock last year. How would
this be classified on a cash flow statement? - ✅✅financing activities
Dax is responsible for preparing financial statements for his employer. Each
statement is reviewed against previous statements and against top competitors.
Which Generally Accepted Accounting Principle (GAAP) standard does this best
demonstrate? - ✅✅comparable
Before the bank decided to lend money to The Photo Place, it needed to examine
the company's ability to pay its short-term debts on time. The bank measures this
using a(n) ________ ratio. - ✅✅liquidity
________ ratios determine how much the firm relies on borrowing to finance its
operations. - ✅✅Debt to owners' equity
Scales Gym Supply has a very high inventory turnover ratio compared to its
competitors. What does this most likely indicate? - ✅✅efficiency and greater
revenue
Paresh called his investors to let them know that the funds received from all sales
of the firm's products reached $1 million, not counting returns or allowances.
Paresh was referring to his - ✅✅gross sales.
answers Graded A+
What task would be a part of the first step in the accounting process? -
✅✅gathering all invoices and receipts (collecting)
The ________ provides a summary of a company's financial condition on a given
date. - ✅✅balance sheet
A company's insurance costs, supplies, and utilities are all ________ expenses. -
✅✅administrative
The ________ shows a firm's revenues and expenses for a particular time period
and the resulting profit or loss. - ✅✅income statement
________ ratios determine how well a firm can pay its liabilities as they come
due. - ✅✅Liquidity
When bookkeepers put journal entries into categories in a ledger, they are in
which step of the accounting process? - ✅✅classification
Coletta is preparing the balance sheet for Zebra Athletics. She is struggling to
determine how to classify the stocks her company owns prior to running the
statement and asks for your help. You tell her that stocks are classified as -
✅✅a current asset.
, The statement "assets = liabilities + owners' equity" is called the -
✅✅accounting equation.
Second Harvest Tractors sold 10,000 shares of new stock last year. How would
this be classified on a cash flow statement? - ✅✅financing activities
Dax is responsible for preparing financial statements for his employer. Each
statement is reviewed against previous statements and against top competitors.
Which Generally Accepted Accounting Principle (GAAP) standard does this best
demonstrate? - ✅✅comparable
Before the bank decided to lend money to The Photo Place, it needed to examine
the company's ability to pay its short-term debts on time. The bank measures this
using a(n) ________ ratio. - ✅✅liquidity
________ ratios determine how much the firm relies on borrowing to finance its
operations. - ✅✅Debt to owners' equity
Scales Gym Supply has a very high inventory turnover ratio compared to its
competitors. What does this most likely indicate? - ✅✅efficiency and greater
revenue
Paresh called his investors to let them know that the funds received from all sales
of the firm's products reached $1 million, not counting returns or allowances.
Paresh was referring to his - ✅✅gross sales.
