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.
