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Bus 211 - Introduction To Accounting / Handout 1

This document provides an introduction to accounting concepts through a series of multiple choice and matching questions. It covers key terms like accounting, profitability, liquidity, and fraud. It also addresses different types of business organizations like sole proprietorships, partnerships, and corporations. Finally, it presents accounting equations and asks the reader to calculate missing values.

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36 views1 page

Bus 211 - Introduction To Accounting / Handout 1

This document provides an introduction to accounting concepts through a series of multiple choice and matching questions. It covers key terms like accounting, profitability, liquidity, and fraud. It also addresses different types of business organizations like sole proprietorships, partnerships, and corporations. Finally, it presents accounting equations and asks the reader to calculate missing values.

Uploaded by

ebrarrsevimm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BUS 211 - INTRODUCTION TO ACCOUNTING / HANDOUT 1

Q1. Match the terms on the left with the definitions on the right:
a. The process of producing accounting information for the internal use
1. Accounting _______ of a company's management.
2. Profitability _______ b. Having enough cash available to pay debts when they are due.
c. Activities management engages in to obtain adequate funds for beginning
3. Liquidity _______ and continuing to operate a business.
4. Financing d. The process of generating and communicating accounting information in
activities _______ the form of financial statements to decision makers outside the organization.
5. Investing e. Activities management engages in to spend capital in ways that are
activities _______ productive and will help a business achieve its objectives.
6. Operating
f. The ability to earn enough income to attract and hold investment capital.
activities _______
7. Financial g. An information system that measures, processes, and communicates
accounting _______ financial information about an identifiable economic entity.
8. Management
h. The intentional preparation of misleading financial statements.
accounting _______
9. Ethics _______ i. Activities management engages in to operate the business.
10. Fraudulent
financial j. A code of conduct that addresses whether actions are right or wrong.
reporting _______

Q2. Indicate whether each of the following words or phrases relates most closely to (a) a business
transaction, (b) a separate entity, or (c) a money measure:

1. Partnership
2. U.S. dollar
3. Payment of an expense
4. Sole proprietorship
5. Sale of an asset

Q3. Match the descriptions on the left with the forms of business organization on the right:
______ 1. Most numerous a. Sole proprietorship
______ 2. Commands most revenues b. Partnership
______ 3. Has two or more co-owners c. Corporation
______ 4. Has stockholders
______ 5. Is owned by only one person
______ 6. Has a board of directors

Q4. Determine the amount missing from each accounting equation below.
Assets = Liabilities + Owner's Equity
1. ? $50,000 $70,000
2. $156,000 $84,000 ?
3. $292,000 ? $192,000

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