Comprehensive Business and Accounting Questions
1. What is the time allowed for the payment of a sale?: Terms
2. What are assets taken out of the business by the owner for personal use called?:
Withdrawals
3. What is the period for which an analysis of the business operations is made?-
: Fiscal period
4. What is a journal entry that contains two or more debits or two or more credits called?:
Compound entry
5. What is an accounting year ending on a date other than December 31 called?-
: Fiscal year
6. What does C.P.A. stand for?: Certified Public Accountant
7. What does C.O.D. stand for?: Collect on delivery
8. What does C.I.F. stand for?: Cost, insurance, & freight
9. What does F.O.B. stand for?: Free on Board
10. What is the term for the amount added to the cost of merchandise to
determine the price?: Mark up
11. What is the term for a business owned by two or more individuals with profits and
losses jointly shared?: Partnership
12. What is the term for money paid for the use of money?: Interest
1/
8
, 13. What is a check drawn by a bank on its own funds and signed by the cashier
called?: Cashier's check
14. What is the cost of a fixed asset less accumulated depreciation called?: Book
value
15. What is an itemized listing of additions to and subtractions from a deposi- tor's
account called?: Bank statement
16. What is the comparison of current assets with current liabilities called?: Current ratio
17. What is the term for a written promise to pay money to another person or
business at a specified time?: Promissory Note
18. What is the term for a payment?: Disbursement
19. What is the term for a check that has been issued but not yet presented for
payment?: Outstanding check
20. What is the term for a report sent to each customer indicating the status of their
account?: Statement of account
21. What is the term for the excess of current assets over current liabilities?: Net working
capital
22. What is the term for a deduction from the sales invoice as an incentive for
customers to pay early?: Sales Discount
23. What is the term for the financial statement that reflects the status of assets,
liabilities, and owner's equity as of a given date?: Balance sheet
24. What is the term for an account used to accumulate decreases in value of fixed
assets?: Allowance for depreciation
25. What is the term for the comparison of total assets with total liabilities?: Total asset ratio
2/
8
1. What is the time allowed for the payment of a sale?: Terms
2. What are assets taken out of the business by the owner for personal use called?:
Withdrawals
3. What is the period for which an analysis of the business operations is made?-
: Fiscal period
4. What is a journal entry that contains two or more debits or two or more credits called?:
Compound entry
5. What is an accounting year ending on a date other than December 31 called?-
: Fiscal year
6. What does C.P.A. stand for?: Certified Public Accountant
7. What does C.O.D. stand for?: Collect on delivery
8. What does C.I.F. stand for?: Cost, insurance, & freight
9. What does F.O.B. stand for?: Free on Board
10. What is the term for the amount added to the cost of merchandise to
determine the price?: Mark up
11. What is the term for a business owned by two or more individuals with profits and
losses jointly shared?: Partnership
12. What is the term for money paid for the use of money?: Interest
1/
8
, 13. What is a check drawn by a bank on its own funds and signed by the cashier
called?: Cashier's check
14. What is the cost of a fixed asset less accumulated depreciation called?: Book
value
15. What is an itemized listing of additions to and subtractions from a deposi- tor's
account called?: Bank statement
16. What is the comparison of current assets with current liabilities called?: Current ratio
17. What is the term for a written promise to pay money to another person or
business at a specified time?: Promissory Note
18. What is the term for a payment?: Disbursement
19. What is the term for a check that has been issued but not yet presented for
payment?: Outstanding check
20. What is the term for a report sent to each customer indicating the status of their
account?: Statement of account
21. What is the term for the excess of current assets over current liabilities?: Net working
capital
22. What is the term for a deduction from the sales invoice as an incentive for
customers to pay early?: Sales Discount
23. What is the term for the financial statement that reflects the status of assets,
liabilities, and owner's equity as of a given date?: Balance sheet
24. What is the term for an account used to accumulate decreases in value of fixed
assets?: Allowance for depreciation
25. What is the term for the comparison of total assets with total liabilities?: Total asset ratio
2/
8
