Accounting Final Review

Sole Proprietorship

A business entity owned by one person whose personal possessions are at risk if the business fails

Coorporation

A business entity that is legally separate and distinct from its owners

Partnership

A business owned by two or more individuals whose personal possessions are at risk if the business fails.

organic organizational structure

A structure in which activities and people are arrange in cross-functional teams.

Financing Activities

Activities involving obtaining necessary funds to purchase long-term assets, repay existing obligations, and provide a return for owners are referred to as

Financing Activities

Activities that involve obtaining the cash or other resources as means to pay for long-term assets, to repay borrowed funds, and provide a return to owners.

Investing activities

Activities that involve the purchase and sale of long-term assets and other major items to achieve the business's strategy

Revenue

An amount earned from rendering services or transferring resources to customers.

Which one of the following processes is responsible for purchase and sale of long-term investments

Capital Resources Process

Fixed Revenue

Company charges set fee for first 10 hours of service and the $50 per hour after the ten hours

Variable Revenue

Fees charged to customers based on hours spent repairing computer

Activities involving the purchase and sale of long-term assets as well as other major items used in a business's operation are referred to as

Financing Activities

The Capital Resources Process features which of the following pairs of activities

Financing and Investing Activities

The balanced scorecard approach has four perspectives, which of the following is not one of those perspectives

Internal Control Perspective

Variable Cost

Material in each unit of product produced

Mixed Cost

On price for first 10,000 kilowatts cost increases for every kilowatt used after 10,000 kilowatts.

The profit making activities of an enterprise are referred to as

Operating Activities

On a bank reconciliation, which of the following will reduce the bank's cash balance?

Outstanding Check

The Balanced Scorecard Approach is part of which of the following processes?

Performance Measurement and Management Process

The grocery store requires employees to ring up sales and place all cash received in the cash register. This is an application of which of the following internal controls:

Physically Controlling assets and documents

Fixed Cost

Rent on manufacturing equipment.

Owner's Equity

Represents the claims on the business to transfer the residual interest (net assets of the business) to the owners.

Fixed Revenue

Retainer (fee) charged by attorney to represent client whether legal work done or not (from attorney's perspective

Variable Cost

Sales commission paid by company

Net Income is found in

Statement of Changes in Shareholders' Equity and Income Statement

Fixed Cost

Supervisors Salary

GAAP

The statements of financial accounting standards, and other authoritative pronouncements that define what constitutes acceptable accounting practice for financial reporting are collectively referred to as:

efficiency strategy

When a company operates in a more certain environment it tends to focus inward and have a(n)

Business Process

A collection of activities that takes one or more kinds of input and creates an output that is valued by customers

Organizational Strategy

A company's long-term plan for using its resources both physical and human.

Net Income

A company's total revenues less its total expenses for a period of time.

Limited Partnership

A partnership composed of one or more general partners and one or more limited partners; only the general partners' personal possessions are at risk if the business should fail.

Limited Liability

A situation in which the money invested in a corporation is at risk but investors' personal possessions are not at risk if the business fails

S Coorporation

A small business corporation owned by no more that 75 individuals; is profits are taxed at the individual level rather than the corporate level

Mecanic Organizational Strategy

A structure in which activities and people are arrange by functions

periodicity concept

The accounting concept requiring that the reporting of profits of a business be done at regular intervals throughout the life of the business is the

operating process

The profit-making activities of a business enterprise.

Net Assets

assets minus liabilities

The owner of a dry cleaning business maintains separate checkbooks for his business and his personal affairs. This best describes an application of the

business entity concept

fixed cost

fixed in total

value added time

processing time

what measures the liquidity of a company

quick ratio

Financing Activity

An accounting firm borrows $100,000 to buy a new computer system. This is an example of a(n)

Expenses

An amount incurred from using resources or services in an effort to generate revenues.

The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following

The financial statements are presented fairly in accordance with GAAP

Liability

The obligation to transfer economic resources to suppliers of goods and services at some point in the future.

Assets

The rights to use resources that have expected future economic benefit.

Internal Control System

The set of policies and procedures that promotes operational efficiency, accurate accounting information, and compliance with laws and regulation.