Business Essentials Unit 4
Assessment Questions with Verified
Answers
The process of keeping the financial records of a business is known as? -
ANSWERSaccounting
The overall purpose of accounting is to do which of the following? - ANSWERScontrol
the finances of the business.
For an accounting system to be useful to the business, the accounting information it
contains must be which of the following? - ANSWERSaccurate and up to date.
Checks, receipts, invoices, and purchase orders are examples of what accounting
information? - ANSWERSsource documents.
Accounting records for a business show that the week's total sales revenues were
$125,000. Cash sales accounted for $50,000 and credit sales, $75,000. This is an
example of what accounting practice? - ANSWERSthe accrual method of accounting.
Which of the following presents the first three steps in the accounting cycle in the
correct order? - ANSWERSAnalyze, journalize, and post
Which of the following categories of information are found on a balance sheet: -
ANSWERSAssets, liabilities, owner's equity
What accounting record would summarize a business's profit or loss for a previous
year? - ANSWERSIncome statement
Finance is the business function that involves managing which of the following? -
ANSWERSmoney.
Money that a business owes to other companies is known as which of the following? -
ANSWERSaccounts payable.
Money that is owed to a business by customers or another company is known as which
of the following? - ANSWERSaccounts receivable.
Which of the following would be involved in a business' long term projects and other
investments? - ANSWERScapital budgeting.
Assessment Questions with Verified
Answers
The process of keeping the financial records of a business is known as? -
ANSWERSaccounting
The overall purpose of accounting is to do which of the following? - ANSWERScontrol
the finances of the business.
For an accounting system to be useful to the business, the accounting information it
contains must be which of the following? - ANSWERSaccurate and up to date.
Checks, receipts, invoices, and purchase orders are examples of what accounting
information? - ANSWERSsource documents.
Accounting records for a business show that the week's total sales revenues were
$125,000. Cash sales accounted for $50,000 and credit sales, $75,000. This is an
example of what accounting practice? - ANSWERSthe accrual method of accounting.
Which of the following presents the first three steps in the accounting cycle in the
correct order? - ANSWERSAnalyze, journalize, and post
Which of the following categories of information are found on a balance sheet: -
ANSWERSAssets, liabilities, owner's equity
What accounting record would summarize a business's profit or loss for a previous
year? - ANSWERSIncome statement
Finance is the business function that involves managing which of the following? -
ANSWERSmoney.
Money that a business owes to other companies is known as which of the following? -
ANSWERSaccounts payable.
Money that is owed to a business by customers or another company is known as which
of the following? - ANSWERSaccounts receivable.
Which of the following would be involved in a business' long term projects and other
investments? - ANSWERScapital budgeting.
