Exam 8: Financial Statements: The Scorecard

Obligations that will become due and payable during the next year or within the operating cycle are know as:

Why does the balance sheet always balance? Please provide examples to illustrate how this works.

The accumulated net income over the life of a corporation (to date) are known as:

What is depreciation and how is it generally applied?

Inventory is typically regarded as a fixed asset.

A balance sheet is a financial statement that reports a business's ongoing average financial position.

Which of the following are the two most basic accounting record keeping tools? (Select 2)

When cost of goods sold (COGS) is subtracted from net sales, the result is the _________.

Assets = Liabilities + Owner's Equity

Expenses that the firm has already paid for but has not yet used are known as:

Cash, land, and equipment are examples of:

Operating expenses are generally divided into Selling Expenses and Administrative Expenses.

Liabilities incurred when goods or supplies are purchased on credit are know as:

The Sales and Cash Receipts Journal is a record of expenditures of funds by the new venture.

The best rated accounting software for Small Business Overall is:

Briefly explain how a business owner benefits from keeping accurate accounting records.