Exam 12: Small Business Accounting: Projecting and Evaluating Performance

Regular and systematic reduction in income that transfers asset value to expense over time is called _____.

In the context of accounting functions,which of the following is true of accounts receivable?

What are some of the tasks an accounting system should be able to perform in order to ensure that a business's accounting information is accurate,reliable,and useful?

The "going concern" concept states that:

Juan has an accounting philosophy according to which he keeps the loans borrowed from the business separate from the loans he takes from banks for his own purposes.Which of the following basic accounting concepts is reflected in Juan's accounting philosophy?

_____ is an indicator of the business's ability to manage cash flows so that the company has the fiscal ability to respond appropriately if an unexpected opportunity or problem arises.

Which of the following does the accounting equation state?

Variance analysis is the process of determining the effect of price and quantity changes on revenues and expenses.

The difference between assets and liabilities of a business is called its:

Which of the following accounting functions ensures that the employment taxes are kept current?

Regardless of your business's size,the one essential element of an accounting system is ________ that is accurate,easy to use,and tracks all checks written and all deposits made.

Which of the following concepts assume that information flows from the income statement through the statement of retained earnings,the statement of owners' equity to the balance sheet?

Briefly discuss the different types of budgets that make up the master budget.

An accounting method that is specifically intended to be used for planning,directing,and controlling a business is called:

Which of the following is true of financial statements?

Sharon handles a home-made gifts business which has gained popularity in her town.After Sharon moved into a big city,however,her marketing efforts could barely help her get just enough revenue to meet her costs.This means Sharon's business is at:

Which of the following is a feature that a chosen accounting system should have?

Expendables are necessarily fixed costs.

Variable costs decrease if output increases.

To ensure your accounting information is accurate,reliable,and useful,the accounting system you choose should easily and efficiently maintain an internal "audit trail".