BUSINESS INTEGRATION CH. 14 EXAM
QUESTIONS WITH VERIFIED
ANSWERS
Select the two terms that can be defined as revenue minus the cost of goods sold.
(multiple select question)
Gross margin
Net sales
Gross profit
Gross income
Net earnings - Answer-Gross profit
Gross income
The process of spreading the cost of a tangible asset over its estimated useful life is
referred to as Blank______. - Answer-depreciation
The cost incurred in the day-to-day operations of an organization is known as
Blank______. - Answer-expenses
If an accountant were to take a firm's total revenue and deduct all expenses
(including taxes), the result would be Blank______. - Answer-net income (or loss)
Which two terms are synonymous with the term "income statement"?
(multiple select question)
trial balance
balance sheet
statement of cash flows
P&L statement
operating statement - Answer-P&L statement
operating statement
The balance sheet takes its name from its reliance on Blank______. - Answer-the
accounting equation
Items that can or will be converted into cash within one calendar year are called
short-term assets or _______________ assets. - Answer-current
Marietta Masks Inc. supplies surgical masks to hundreds of hospitals across the
United States. They ship orders for the masks out on the first of each month and
customers are expected to pay the cost of the shipment by the end of the month.
The money that Marietta Masks Inc. receives by the end of the month is an example
of Blank______. - Answer-accounts receivable
Depreciation is considered a type of Blank______. - Answer-general and
administrative expense
, Generally, accountants divide profits into individual sections such as Blank______.
(multiple select question)
earnings before taxes and interest
cost of goods sold
operating income
cost of revenue - Answer-earnings before taxes and interest
operating income
Which of the following is not a characteristic of a balance sheet?
(multiple choice question)
It presents a "snapshot" of the organization.
It states that liabilities must equal owners' equity.
It derives its name from its reliance on the accounting equation.
It indicates company assets and liabilities. - Answer-It states that liabilities must
equal owners' equity.
Which financial obligation must be repaid within one year? - Answer-current liabilities
Assets that can or will be converted into cash within one year are termed
Blank______. - Answer-current assets
The definition of accounts payable is Blank______. - Answer-the amount a company
owes to suppliers for goods and services purchased with credit
Terry's Tire shop has replaced the tires on 10 delivery trucks for one of his best
clients—Deliveries 4U. Terry is allowing Deliveries 4U to pay for the tires over a
period of time. The money owed to Terry by Deliveries 4U is considered: - Answer-
an accounts receivable.
Accrued expenses represent Blank______. - Answer-all unpaid financial obligations
of a firm
Owners' contributions to the organization in combination with income earned and
retained to grow and develop the firm are called Blank______. - Answer-owner's
equity
The difference between revenue and expenses is called Blank______. - Answer-net
income or loss
The major activities of a firm, as shown on the statement of cash flows, include all of
the following except Blank______.
cash from taxes
cash from operations
cash from financing activities
cash from investing activities - Answer-cash from taxes
QUESTIONS WITH VERIFIED
ANSWERS
Select the two terms that can be defined as revenue minus the cost of goods sold.
(multiple select question)
Gross margin
Net sales
Gross profit
Gross income
Net earnings - Answer-Gross profit
Gross income
The process of spreading the cost of a tangible asset over its estimated useful life is
referred to as Blank______. - Answer-depreciation
The cost incurred in the day-to-day operations of an organization is known as
Blank______. - Answer-expenses
If an accountant were to take a firm's total revenue and deduct all expenses
(including taxes), the result would be Blank______. - Answer-net income (or loss)
Which two terms are synonymous with the term "income statement"?
(multiple select question)
trial balance
balance sheet
statement of cash flows
P&L statement
operating statement - Answer-P&L statement
operating statement
The balance sheet takes its name from its reliance on Blank______. - Answer-the
accounting equation
Items that can or will be converted into cash within one calendar year are called
short-term assets or _______________ assets. - Answer-current
Marietta Masks Inc. supplies surgical masks to hundreds of hospitals across the
United States. They ship orders for the masks out on the first of each month and
customers are expected to pay the cost of the shipment by the end of the month.
The money that Marietta Masks Inc. receives by the end of the month is an example
of Blank______. - Answer-accounts receivable
Depreciation is considered a type of Blank______. - Answer-general and
administrative expense
, Generally, accountants divide profits into individual sections such as Blank______.
(multiple select question)
earnings before taxes and interest
cost of goods sold
operating income
cost of revenue - Answer-earnings before taxes and interest
operating income
Which of the following is not a characteristic of a balance sheet?
(multiple choice question)
It presents a "snapshot" of the organization.
It states that liabilities must equal owners' equity.
It derives its name from its reliance on the accounting equation.
It indicates company assets and liabilities. - Answer-It states that liabilities must
equal owners' equity.
Which financial obligation must be repaid within one year? - Answer-current liabilities
Assets that can or will be converted into cash within one year are termed
Blank______. - Answer-current assets
The definition of accounts payable is Blank______. - Answer-the amount a company
owes to suppliers for goods and services purchased with credit
Terry's Tire shop has replaced the tires on 10 delivery trucks for one of his best
clients—Deliveries 4U. Terry is allowing Deliveries 4U to pay for the tires over a
period of time. The money owed to Terry by Deliveries 4U is considered: - Answer-
an accounts receivable.
Accrued expenses represent Blank______. - Answer-all unpaid financial obligations
of a firm
Owners' contributions to the organization in combination with income earned and
retained to grow and develop the firm are called Blank______. - Answer-owner's
equity
The difference between revenue and expenses is called Blank______. - Answer-net
income or loss
The major activities of a firm, as shown on the statement of cash flows, include all of
the following except Blank______.
cash from taxes
cash from operations
cash from financing activities
cash from investing activities - Answer-cash from taxes
