BUS 1000 test 2 Questions and
Correct Answers.
Accounting - Answer the recording, classifying, summarizing, and interpreting of financial
events and transactions to provide management and other interested parties the information
they need to make good decisions
Financial Accounting - Answer accounting information and analyses prepared for people
outside the organization
Annual Report - Answer a yearly statement of the financial condition, progress, and
expectations of an organization
Auditing - Answer the job of reviewing and evaluating the information used to prepare a
company's financial statements
Independent Audit - Answer and evaluation an unbiased opinion about the accuracy of a
company's financial statements
Journal - Answer the record book or computer program where accounting data are first
entered
Ledger - Answer a specialized accounting book or computer program where accounting data
are first entered
Financial Statement - Answer a summary of all the transaction that have occurred over a
particular period
Balance Sheet - Answer financial statement that reports a firms's financial condition at a
specific time and is compared of three major accounts: assets, liabilities and owners' equity
Liquidity - Answer the ease with which an asset can be converted into cash
Income Statement - Answer the financial statement that shows a firm's profit after costs,
expenses, and taxes; it summarizes all of then resources that have come into the firm (revenue),
all the resource that have left the firm, and resulting in net income
Net income or net loss - Answer revenue left over after all cost and expenses, including taxes,
are paid
Correct Answers.
Accounting - Answer the recording, classifying, summarizing, and interpreting of financial
events and transactions to provide management and other interested parties the information
they need to make good decisions
Financial Accounting - Answer accounting information and analyses prepared for people
outside the organization
Annual Report - Answer a yearly statement of the financial condition, progress, and
expectations of an organization
Auditing - Answer the job of reviewing and evaluating the information used to prepare a
company's financial statements
Independent Audit - Answer and evaluation an unbiased opinion about the accuracy of a
company's financial statements
Journal - Answer the record book or computer program where accounting data are first
entered
Ledger - Answer a specialized accounting book or computer program where accounting data
are first entered
Financial Statement - Answer a summary of all the transaction that have occurred over a
particular period
Balance Sheet - Answer financial statement that reports a firms's financial condition at a
specific time and is compared of three major accounts: assets, liabilities and owners' equity
Liquidity - Answer the ease with which an asset can be converted into cash
Income Statement - Answer the financial statement that shows a firm's profit after costs,
expenses, and taxes; it summarizes all of then resources that have come into the firm (revenue),
all the resource that have left the firm, and resulting in net income
Net income or net loss - Answer revenue left over after all cost and expenses, including taxes,
are paid
