BUS 1350 EXAM 3 FINAL PAPER COMPLETE
QUESTIONS WITH CORRECT ANSWERS
ALREADY PASSED
●● accounting system
Answer: the formal method a business uses to keep track of and organize
its financial records, such as sales, expenses, assets, and liabilities
●● accounts payable
Answer: the obligations that a business has to pay in the future, such as
wages, taxes, and payments to suppliers
●● assets
Answer: resources owned by the business that hold intrinsic,
quantifiable value. They are considered as economic benefits received or
to be received by the business as part of transactions or events
●● balance sheet
Answer: provides detailed information about assets, liabilities, and
owner's equity
●● cash flow statement
,Answer: offers a detailed narrative of what happened to the business'
cash during a period
●● costs of goods sold (COGS)
Answer: the expenses related to the business' producing a good, such as
purchased materials and the labor used in producing the goods
●● current ratio
Answer: measures liquidity, or cash flow, to reveal if the business has
the current assets on-hand to cover its bills in a timely manner and run
its operations efficiently
●● debt to equity ratio
Answer: also called the risk ratio, measures the amount of all debts and
liabilities against the owner's equity
●● depreciation
Answer: the reduction in the value of an asset over time
●● depreciation expenses
Answer: accounts for the reduction of value of an asset
●● detective controls
, Answer: intended to find errors or irregularities once they have occurred
●● expenses
Answer: the amount of cash that goes out of the business because the
business is buying goods or services needed for its operations
●● funding
Answer: the business liabilities, the sum of money a business owes, such
as loans, accounts payable, mortgages or rent, and any other expenses
●● gains
Answer: increases in equity from transactions and other events
●● general and administrative expenses
Answer: the expenses indirectly related to the business' producing a
good or providing a service, such as rent, utilities, insurance, and other
overhead costs
●● goodwill
Answer: the amount of extra money that a business pays for another
company that exceeds the value of the assets
●● gross margin
QUESTIONS WITH CORRECT ANSWERS
ALREADY PASSED
●● accounting system
Answer: the formal method a business uses to keep track of and organize
its financial records, such as sales, expenses, assets, and liabilities
●● accounts payable
Answer: the obligations that a business has to pay in the future, such as
wages, taxes, and payments to suppliers
●● assets
Answer: resources owned by the business that hold intrinsic,
quantifiable value. They are considered as economic benefits received or
to be received by the business as part of transactions or events
●● balance sheet
Answer: provides detailed information about assets, liabilities, and
owner's equity
●● cash flow statement
,Answer: offers a detailed narrative of what happened to the business'
cash during a period
●● costs of goods sold (COGS)
Answer: the expenses related to the business' producing a good, such as
purchased materials and the labor used in producing the goods
●● current ratio
Answer: measures liquidity, or cash flow, to reveal if the business has
the current assets on-hand to cover its bills in a timely manner and run
its operations efficiently
●● debt to equity ratio
Answer: also called the risk ratio, measures the amount of all debts and
liabilities against the owner's equity
●● depreciation
Answer: the reduction in the value of an asset over time
●● depreciation expenses
Answer: accounts for the reduction of value of an asset
●● detective controls
, Answer: intended to find errors or irregularities once they have occurred
●● expenses
Answer: the amount of cash that goes out of the business because the
business is buying goods or services needed for its operations
●● funding
Answer: the business liabilities, the sum of money a business owes, such
as loans, accounts payable, mortgages or rent, and any other expenses
●● gains
Answer: increases in equity from transactions and other events
●● general and administrative expenses
Answer: the expenses indirectly related to the business' producing a
good or providing a service, such as rent, utilities, insurance, and other
overhead costs
●● goodwill
Answer: the amount of extra money that a business pays for another
company that exceeds the value of the assets
●● gross margin
