Business 1000 Final Exam Questions With
Correct Answers
Accounting |- |CORRECT |ANSWER✔✔-A |comprehensive |system |for |collecting, |analyzing |and |
communicating |financial |information. |Results |in |a |set |of |financial |statements.
Bookkeeping |- |CORRECT |ANSWER✔✔-The |first |step |in |accounting. |Recording |transactions.
Controller |- |CORRECT |ANSWER✔✔-Person |who |manages |all |the |firms |activities.Size |of |the |
department |motor |people |work |there |and |there |are |more |titles.
Business |Managers |- |CORRECT |ANSWER✔✔-Need |accounting |to; |set |goals |& |budgets, |develop
|plans, |evaluate |opportunities. |(internal)
Employees |and |unions |- |CORRECT |ANSWER✔✔-Need |accounting |to: |get |paid, |to |plan |for |and |
receive |benefits.
Investors |and |creditors. |- |CORRECT |ANSWER✔✔-Different |people |who |buy |stocks, |they |keep |
tabs |so |they |know |the |risk. |They |estimate |returns, |future |growth |& |credit |risk.
Taxing |authorities |- |CORRECT |ANSWER✔✔-They |want |to |know |people |are |remitting |the |right |
taxes. |They |plan |for |tax |flow, |determine |tax |liabilities |and |aid |in |collection. |(external)
Government |regulatory |agencies. |- |CORRECT |ANSWER✔✔-The |watch |dogs |making |sure |
financial |statements |are |prepared |properly. |Protects |investors |interests. |(external)
,Financial |Accounting |- |CORRECT |ANSWER✔✔-Keeps |interested |external |parties |informed |
about |the |firm's |financial |condition. |Ex: |wage |cost |for |Air |Canada |for |2016
Managerial |Accounting |- |CORRECT |ANSWER✔✔-Keeps |internal |paries |(managers) |informed |of |
how |the |firm |is |doing |financially. |Looks |at |just |a |piece |of |the |company. |Ex: |wage |cost |for |
Atlantic |Canada.
Auditing |- |CORRECT |ANSWER✔✔-Examination |of |financial |records |to |ensure |fair |
representation |and |proper |procedures. |Looks |at |financial |statements |for |.
Forensic |accounting |- |CORRECT |ANSWER✔✔-Tracking |down |hidden |funds |in |business |firms |
(generally |part |of |an |investigation)
Tax |Services |- |CORRECT |ANSWER✔✔-Tax |return |preparation |and |tax |planning.
Management |Consulting |Services. |- |CORRECT |ANSWER✔✔-From |personal |financial |planning |to
|business |planning. |Used |to |do |special |projects |like |muskrat |falls.
Private |Accountants. |- |CORRECT |ANSWER✔✔-Hired |as |salaried |employees, |deal |with |day-to-
day |accounting |needs. |Small |business |may |have |just |one, |however |large |business' |may |have |
many |area |specialists.
Asset |- |CORRECT |ANSWER✔✔-Anything |of |economic |value |owned |by |a |firm |or |individual. |Can |
be |short |term |or |long |term.
Liability |- |CORRECT |ANSWER✔✔-Any |debt |owed |by |a |firm |or |an |individual |to |others. |Can |be |
short |term |or |long |term.
Owners |Equity |- |CORRECT |ANSWER✔✔-Any |positive |difference |between |a |firm's |assets |and |
liabilities. |original |investments |plus |profit |earned |minus |losses.
, Balance |Sheet |- |CORRECT |ANSWER✔✔-Firms |financial |position |at |one |point |in |time. |(assets, |
liabilities, |owners |equity)
Income |Statement |- |CORRECT |ANSWER✔✔-Presents |revenues |and |expenses |and |profits |or |
losses |during |a |period |or |time. |Looks |at |how |management |has |looked |after |the |money.
Statement |of |Cash |Flow |- |CORRECT |ANSWER✔✔-Presents |generation, |and |use, |of |cash |during |
a |period |of |time.
Current |Assets |- |CORRECT |ANSWER✔✔-Cash |and |assets |that |can |be |converted |into |cash |
within |the |year |listed |in |order |of |liquidity.
Accounts |Receivable |- |CORRECT |ANSWER✔✔-Invoices, |or |amounts |owed |to |the |firm |by |
customers.
Inventory |- |CORRECT |ANSWER✔✔-Costs |of |merchandise |acquired |for |sale |but |not |yet |sold.
Prepaid |expenses |- |CORRECT |ANSWER✔✔-Supplies |on |hand |and |rent |(other |bills) |paid |for |
coming |period.
Fixed |Assets |- |CORRECT |ANSWER✔✔-Have |a |long |term |use |or |value |(land, |building, |
machinery)
Depreciation |- |CORRECT |ANSWER✔✔-distributing |the |cost |of |major |assets |over |lifetime, |
deducted |yearly.
Intangible |Assets |- |CORRECT |ANSWER✔✔-Patents, |trademarks, |copyrights, |franchise |fees. |
Until |they |sell |you |don't |know |what |they |are |worth.
Correct Answers
Accounting |- |CORRECT |ANSWER✔✔-A |comprehensive |system |for |collecting, |analyzing |and |
communicating |financial |information. |Results |in |a |set |of |financial |statements.
Bookkeeping |- |CORRECT |ANSWER✔✔-The |first |step |in |accounting. |Recording |transactions.
Controller |- |CORRECT |ANSWER✔✔-Person |who |manages |all |the |firms |activities.Size |of |the |
department |motor |people |work |there |and |there |are |more |titles.
Business |Managers |- |CORRECT |ANSWER✔✔-Need |accounting |to; |set |goals |& |budgets, |develop
|plans, |evaluate |opportunities. |(internal)
Employees |and |unions |- |CORRECT |ANSWER✔✔-Need |accounting |to: |get |paid, |to |plan |for |and |
receive |benefits.
Investors |and |creditors. |- |CORRECT |ANSWER✔✔-Different |people |who |buy |stocks, |they |keep |
tabs |so |they |know |the |risk. |They |estimate |returns, |future |growth |& |credit |risk.
Taxing |authorities |- |CORRECT |ANSWER✔✔-They |want |to |know |people |are |remitting |the |right |
taxes. |They |plan |for |tax |flow, |determine |tax |liabilities |and |aid |in |collection. |(external)
Government |regulatory |agencies. |- |CORRECT |ANSWER✔✔-The |watch |dogs |making |sure |
financial |statements |are |prepared |properly. |Protects |investors |interests. |(external)
,Financial |Accounting |- |CORRECT |ANSWER✔✔-Keeps |interested |external |parties |informed |
about |the |firm's |financial |condition. |Ex: |wage |cost |for |Air |Canada |for |2016
Managerial |Accounting |- |CORRECT |ANSWER✔✔-Keeps |internal |paries |(managers) |informed |of |
how |the |firm |is |doing |financially. |Looks |at |just |a |piece |of |the |company. |Ex: |wage |cost |for |
Atlantic |Canada.
Auditing |- |CORRECT |ANSWER✔✔-Examination |of |financial |records |to |ensure |fair |
representation |and |proper |procedures. |Looks |at |financial |statements |for |.
Forensic |accounting |- |CORRECT |ANSWER✔✔-Tracking |down |hidden |funds |in |business |firms |
(generally |part |of |an |investigation)
Tax |Services |- |CORRECT |ANSWER✔✔-Tax |return |preparation |and |tax |planning.
Management |Consulting |Services. |- |CORRECT |ANSWER✔✔-From |personal |financial |planning |to
|business |planning. |Used |to |do |special |projects |like |muskrat |falls.
Private |Accountants. |- |CORRECT |ANSWER✔✔-Hired |as |salaried |employees, |deal |with |day-to-
day |accounting |needs. |Small |business |may |have |just |one, |however |large |business' |may |have |
many |area |specialists.
Asset |- |CORRECT |ANSWER✔✔-Anything |of |economic |value |owned |by |a |firm |or |individual. |Can |
be |short |term |or |long |term.
Liability |- |CORRECT |ANSWER✔✔-Any |debt |owed |by |a |firm |or |an |individual |to |others. |Can |be |
short |term |or |long |term.
Owners |Equity |- |CORRECT |ANSWER✔✔-Any |positive |difference |between |a |firm's |assets |and |
liabilities. |original |investments |plus |profit |earned |minus |losses.
, Balance |Sheet |- |CORRECT |ANSWER✔✔-Firms |financial |position |at |one |point |in |time. |(assets, |
liabilities, |owners |equity)
Income |Statement |- |CORRECT |ANSWER✔✔-Presents |revenues |and |expenses |and |profits |or |
losses |during |a |period |or |time. |Looks |at |how |management |has |looked |after |the |money.
Statement |of |Cash |Flow |- |CORRECT |ANSWER✔✔-Presents |generation, |and |use, |of |cash |during |
a |period |of |time.
Current |Assets |- |CORRECT |ANSWER✔✔-Cash |and |assets |that |can |be |converted |into |cash |
within |the |year |listed |in |order |of |liquidity.
Accounts |Receivable |- |CORRECT |ANSWER✔✔-Invoices, |or |amounts |owed |to |the |firm |by |
customers.
Inventory |- |CORRECT |ANSWER✔✔-Costs |of |merchandise |acquired |for |sale |but |not |yet |sold.
Prepaid |expenses |- |CORRECT |ANSWER✔✔-Supplies |on |hand |and |rent |(other |bills) |paid |for |
coming |period.
Fixed |Assets |- |CORRECT |ANSWER✔✔-Have |a |long |term |use |or |value |(land, |building, |
machinery)
Depreciation |- |CORRECT |ANSWER✔✔-distributing |the |cost |of |major |assets |over |lifetime, |
deducted |yearly.
Intangible |Assets |- |CORRECT |ANSWER✔✔-Patents, |trademarks, |copyrights, |franchise |fees. |
Until |they |sell |you |don't |know |what |they |are |worth.
