BSNS115 Final Exam Questions With
Correct Answers
unlimited liability - CORRECT ANSWER✔✔-the responsibility of business
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owners for all of the debts of the business
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limited liability - CORRECT ANSWER✔✔-when a business is unable to
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pay debts, responsibility is on the businesses investments
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assets - CORRECT ANSWER✔✔-anything the firm owns that generates
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profit
current-assets - CORRECT ANSWER✔✔-cash and other assets expected
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to be exchanged for cash or consumed within a year
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non-current assets - CORRECT ANSWER✔✔-Items that a business owns
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and which it expects to retain for one year or longer.
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Current assets include - CORRECT ANSWER✔✔-cash, accounts
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receivable, inventory |
,liabilities - CORRECT ANSWER✔✔-what a company owes
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Current Liabilities - CORRECT ANSWER✔✔-debts of the business that
| | | | | | | | |
must be paid within the next accounting period
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Non-current liabilities - CORRECT ANSWER✔✔-value of debts of the
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business that will be payable after more than one year
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Current liabilities include - CORRECT ANSWER✔✔-notes payable,
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accounts payable, unearned revenues, and accrued liabilities such as
| | | | | | | | |
taxes, salaries and wages, and interest.
| | | | |
Non-current liabilities include - CORRECT ANSWER✔✔-long term loans
| | | | | | | |
and bonds
|
contributed capital - CORRECT ANSWER✔✔-total value of personal
| | | | | | | |
assets contributed by the owners to the firm
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retained earnings - CORRECT ANSWER✔✔-total profit from the previous
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periods that the firm has held onto
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drawings - CORRECT ANSWER✔✔-Withdrawal of cash or other assets
| | | | | | | | |
from an unincorporated business for the personal use of the owner(s).
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, Dividends - CORRECT ANSWER✔✔-distribution of profits to
| | | | | | |
shareholders
income - CORRECT ANSWER✔✔-inflow of economic benefits
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revenue - CORRECT ANSWER✔✔-received from ordinary activities
| | | | | |
gains - CORRECT ANSWER✔✔-received form other activities (selling of
| | | | | | | | |
work car)
|
expenses - CORRECT ANSWER✔✔-outflow of economic benefit
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accounting equation - CORRECT ANSWER✔✔-Assets = Liabilities +
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Owner's Equity |
errors in recording transactions - CORRECT ANSWER✔✔-- single entry
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error
- transposition error
| |
- incorrect entry
| |
Correct Answers
unlimited liability - CORRECT ANSWER✔✔-the responsibility of business
| | | | | | |
owners for all of the debts of the business
| | | | | | | | |
limited liability - CORRECT ANSWER✔✔-when a business is unable to
| | | | | | | | | |
pay debts, responsibility is on the businesses investments
| | | | | | |
assets - CORRECT ANSWER✔✔-anything the firm owns that generates
| | | | | | | | |
profit
current-assets - CORRECT ANSWER✔✔-cash and other assets expected
| | | | | | | |
to be exchanged for cash or consumed within a year
| | | | | | | | |
non-current assets - CORRECT ANSWER✔✔-Items that a business owns
| | | | | | | | |
and which it expects to retain for one year or longer.
| | | | | | | | | |
Current assets include - CORRECT ANSWER✔✔-cash, accounts
| | | | | | |
receivable, inventory |
,liabilities - CORRECT ANSWER✔✔-what a company owes
| | | | | |
Current Liabilities - CORRECT ANSWER✔✔-debts of the business that
| | | | | | | | |
must be paid within the next accounting period
| | | | | | |
Non-current liabilities - CORRECT ANSWER✔✔-value of debts of the
| | | | | | | | |
business that will be payable after more than one year
| | | | | | | | |
Current liabilities include - CORRECT ANSWER✔✔-notes payable,
| | | | | | |
accounts payable, unearned revenues, and accrued liabilities such as
| | | | | | | | |
taxes, salaries and wages, and interest.
| | | | |
Non-current liabilities include - CORRECT ANSWER✔✔-long term loans
| | | | | | | |
and bonds
|
contributed capital - CORRECT ANSWER✔✔-total value of personal
| | | | | | | |
assets contributed by the owners to the firm
| | | | | | |
retained earnings - CORRECT ANSWER✔✔-total profit from the previous
| | | | | | | |
periods that the firm has held onto
| | | | | | |
drawings - CORRECT ANSWER✔✔-Withdrawal of cash or other assets
| | | | | | | | |
from an unincorporated business for the personal use of the owner(s).
| | | | | | | | | |
, Dividends - CORRECT ANSWER✔✔-distribution of profits to
| | | | | | |
shareholders
income - CORRECT ANSWER✔✔-inflow of economic benefits
| | | | | |
revenue - CORRECT ANSWER✔✔-received from ordinary activities
| | | | | |
gains - CORRECT ANSWER✔✔-received form other activities (selling of
| | | | | | | | |
work car)
|
expenses - CORRECT ANSWER✔✔-outflow of economic benefit
| | | | | |
accounting equation - CORRECT ANSWER✔✔-Assets = Liabilities +
| | | | | | | |
Owner's Equity |
errors in recording transactions - CORRECT ANSWER✔✔-- single entry
| | | | | | | | |
error
- transposition error
| |
- incorrect entry
| |
