Exam 13: Small Business Accounting: Projecting and Evaluating Performance

The accounting equation is simply stated as Assets = Liabilities - Owners' Equity.

_____ is an accounting method which assigns costs based on the different types of work a business does in order to sell a particular product or service.

The primary criteria for a small business's record keeping system are all of these EXCEPT

The sum of all profits and losses,less all dividends paid since the beginning of the business is called

One reason why accounting is important to a small business is that it shows how much your business is worth.

The rule of thumb for evaluating current ratio is that the minimum acceptable ratio is

A(n)_____ is simply a record of transactions that are similar in nature.

Which of these is NOT identified as a most basic accounting concept?

Which of the following statements is true regarding the balance sheet?

Expenses are the value given up to obtain something that you want.

The value of current assets divided by current liabilities is called

Accounting is important to a small business for all of these reasons EXCEPT

Activities involved in producing and selling goods and services are called _____ activities.

Breakeven point

Barb's Bakery Barb Bowman fell into the baking business. It used to be a hobby. She made and sold cakes and cookies for birthdays and family events in the neighborhood and for friends' parties. Now, having opened the bakery, the business has taken off and Barb is wondering what sort of records she needs to keep. -Barb will need all of these commonly used financial statements EXCEPT

Payroll records help ensure that employment taxes are kept current.

_____ is a measure of how quickly a company can raise money through internal sources by converting assets to cash.

Fixed asset accounting

Barb's Bakery Barb Bowman fell into the baking business. It used to be a hobby. She made and sold cakes and cookies for birthdays and family events in the neighborhood and for friends' parties. Now, having opened the bakery, the business has taken off and Barb is wondering what sort of records she needs to keep. -When exploring the accounting system software,Barb should know that _____ lists revenues and expenses and shows the amount of profit her business has made for a specified period of time.

Identify the managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales to maximize profits.