31 July 2008
Accounting Quiz
Quiz for Using Accounting Information, Chapter 18
A. Accounting
B. Assets
C. Balance Sheet
D. Current Ratio
E. Liabilities
F. Liquidity
G. Notes payable
H. Owner’s Equity
I. Public Accountant
J. Statement of Cash Flows
1) It is the process of collecting, analyzing and reporting data.
A. Accounting
2) All the firm’s debts are included.
E. Liabilities
3) It is the difference between a firm’s assets and its liabilities.
H. Owner’s Equity
4) A person employed by PricewaterhouseCoopers.
I. Public Accountant
5) Inventories are an example.
B. Assets
6) The ease with which assets can be converted into cash.
F. Liquidity
7) The statement reveals the financial position of the firm.
C. Balance Sheet
It illustrates how operating, investing and financing activities affect cash.
J. Statement of Cash Flows
9) A promissory note secures this obligation.
G. Notes payable
10) The result of dividing current assets by current liabilities.
D. Current Ratio
11) Who are the primary users of accounting information?
Managers
12) The accounting process is based on the accounting equation:
Assets = liabilities + owner’s equity.
13) What is a Balance Sheet?
A balance sheet is a summary of a firm’s assets, liabilities, and owner’s equity.
14) What is an Income Statement?
An income statement is a summary of a firm’s financial operations during the specified accounting period.
15) What is a Statement of Cash Flows?
This statement illustrates how the operating, investing and financing activities of a company affect cash during an accounting period.
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