Exam 1: Introduction to Business Accounting and the Role of Professional Skills

_________________________ are businesses owned by one person who is the sole investor of capital into the business.

You really like the topic of accounting and are considering it as a possible career opportunity. You are aware that professional accountants are bound by a code of ethics. Discuss some of the issues that are addressed by having a code of ethics.

Which of the following summarises the results of a business' operating activities for a specific time period?

Business manages must be able to use their skills to evaluate and manage the vast amount of information which is available to their advantage.

Which of the following is the correct order of the four stages of the critical thinking process?

Operating is the management activity concerned with measuring a business' actual operations and progress against benchmarks.

____________________ businesses purchase goods for resale to their customers.

____________________ are businesses owned by two or more individuals who each invest capital, time and/or talent into the business and share in its profits and losses.

Cost analysis reports are management tools the accounting system provides to assist management in planning activities.

Your friend has been provided with the most recent financial statements for a business that she is interested in buying. She is familiar with the income statement and cashflow statement but is unsure about the contents of the balance sheet. Briefly describe the information contained in a balance sheet.

A supermarket is an example of a retailing business.

____________________ businesses make their products and then sell these products to their customers.

A balance sheet lists the business' assets, liabilities and owners' equity at a given date.

Within a partnership, each partner is an ____________________ of the partnership, meaning each partner has the authority to act for the other partners.

Many business and accounting issues cannot be interpreted as absolutely right or wrong.

What is the primary difference between a manufacturer and a merchandiser?

_______________ is the difference between the total revenues and the total costs (expenses) of the business during a specific time period.

To be able to 'go with the flow' a successful businessperson should be __________ and ___________.

Many businesses have no need for accounting information and can actually exist without an accounting system.

Management accounting information: