Entrepreneurship and Small Business Management

Chapter 20: Accounting and Financial Reporting

Practice Test

1
All U.S. businesses follow the same accounting principles and procedures, known as______________.
A)GAAP
B)SCORE
C)IPO
D)SBICs
2
When a business owner chooses to have his financial accounting begin on other than a calendar year, this is referred to as a/an______________.
A)accounting period
B)open-book period
C)fiscal year
D)financial year
3
_____________are anything of value that the business owns.
A)Capital
B)Assets
C)Collateral
D)Equity
4
____________are the debts of a company.
A)Cash flows
B)Capital
C)Credit
D)Liabilities
5
An owner sets up a/an____________ for a specific category when he or she create the books of the company.
A)fund
B)account
C)category
D)line of credit
6
Most businesses use a/an____________system, which means that when one business transaction occurs, it affects two or more accounts.
A)open-book
B)debit
C)asset account
D)double-entry
7
An all-purpose record of business transactions is called a_______________.
A)general journal
B)sales journal
C)diary
D)purchases journal
8
A__________ journal is a special journal in which payments made in cash are posted.
A)cash receipts
B)purchases journal
C)cash disbursements
D)sales journal
9
_____________is the process of transferring amounts from the general journal to accounts in the general ledger.
A)Debiting
B)Posting
C)Balancing
D)Journalizing
10
The statement of operations and earnings is also called a/an___________.
A)income statement
B)statement of cash flows
C)balance sheet
D)general ledger
11
A/An____________is a report of the financial balances of all assets, liability, and owner's equity at the end of an accounting period.
A)income statement
B)balance sheet
C)statement of cash flows
D)cash receipts journal
12
The amount of cash that is available at any given time is called____________.
A)capital
B)income
C)cash flow
D)cash receipts
13
____________is a weekly accounting activity.
A)Keeping tax records
B)Preparing financial statements
C)Balancing the checkbook
D)Paying payroll taxes
14
____________is a monthly accounting activity.
A)Keeping track of payments
B)Balancing the checkbook
C)Keeping tax records
D)Posting to the general ledger
15
A____________is used to purchase items that are too inexpensive to pay by check.
A)contingency fund
B)credit card
C)line of credit
D)petty cash fund
Glencoe Online Learning CenterBusiness Administration HomeProduct InfoSite MapContact Us

The McGraw-Hill CompaniesGlencoe

Please read our Terms of Use and Privacy Notice before you explore our Web site. To report a technical problem with this Web site, please contact the Web Producer.