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Business
University
grade
Chapter 10 and 11: Accounting and Finance
15 questions
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- Multiple ChoicePlease save your changes before editing any questions.
Accounting is ....
the process of recording financial transactions pertaining to a business
art and science of managing money
a social science that deals with the production, distribution, and consumption of goods and services
- Multiple ChoicePlease save your changes before editing any questions.
An Asset is...
An asset is a resource currently owned and controlled by a business as a result of a past transaction
An asset is a resource owned by a business as a result of a past transaction
An asset is something that costs money
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is an example of an asset?
Vehicle
Electricity
Mortgage
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is an example of a liability?
Loan
Building
Sales
Accounts receivable
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is an example of Income
Sales
Mortgage
Equipment
- Multiple ChoicePlease save your changes before editing any questions.
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
- Multiple ChoicePlease save your changes before editing any questions.
Summary of assets and liabilities
Profit and loss account
Balance Sheet
Trading acccont
Income and expenditure account
- Multiple ChoicePlease save your changes before editing any questions.
Accounting is referred to as the "language of ___________________."
Profit
Life
Accounting
Business
- Multiple ChoicePlease save your changes before editing any questions.
Goodwill is a
Tangible assets
Liquid assets
Intangible assets
Intangible Liabilities
- Multiple ChoicePlease save your changes before editing any questions.
Managerial accounting is designed for use by:
Internal users
Stockbrokers
External users
Clients
- Multiple ChoicePlease save your changes before editing any questions.
What is the accounting equation
Revenue - Expenses = Profit
Capital + Assets = Liabilities
Capital + Liabilities = Assets
Capital - Liabilities = Assets
- Multiple ChoicePlease save your changes before editing any questions.
The formula for calculating the break-even number of units is:
- Multiple ChoicePlease save your changes before editing any questions.
The time it takes to double an investment can be estimated by using which of the following?
book value
the Rule of 72
blue-chips
- Multiple ChoicePlease save your changes before editing any questions.
What is Finance?
Finance refers to art and science of managing money
Finance is the process of recording financial transactions pertaining to a business
Finance is process to identifying customer needs and wants
- Multiple ChoicePlease save your changes before editing any questions.
Fara earns an interest rate of 2.2% on a $9,000 savings account. Let’s calculate the future value of this amount if Fara keeps it for 11 years:
Formula: FV= PV(1+i)7
$11,434.11
$10,434.11
$9,434.11