AC/113 AC113 AC 113 UNIT 1 QUIZ

 1.

Question :

Accounting:

Student Answer:

 Can be divided into two major areas – financial accounting and managerial accounting

 Is the means by which business information is communicated to the stakeholders

 Is sometimes called the language of business

 All answers are correct

Question 2.

Question :

The resources a business owns are called __________.

Student Answer:

 assets

 liabilities

 products

 stockholder's equity

Question 3.

Question :

Investing activities of the business include:

Student Answer:

 Activities to obtain the necessary resources (assets) to start the business

 Activities that increase assets from selling products

 Activities to obtain funds to begin and operate a business

 None of these choices describe investing activities

Question 4.

Question :

Generally accepted accounting principles (GAAP):

Student Answer:

 Determine the proper content of financial statements

 Are accounting "rules"

 Are established by the Financial Accounting Standards Board in the United States

 All answers are correct

Question 5.

Question :

Which of the following is NOT a satisfactory statement of the accounting equation?

Student Answer:

 Assets = Liabilities + Owners' Equity

 Assets - Owners' Equity = Liabilities

 Assets = Liabilities - Owners' Equity

 Owners' Equity = Assets - Liabilities