Preparing a budget for a business is considered
A. financial accounting.
B. managerial accounting Correct Answer: B
Accounting is the information system that
A. measures business activities
B. communicates the re
...
Preparing a budget for a business is considered
A. financial accounting.
B. managerial accounting Correct Answer: B
Accounting is the information system that
A. measures business activities
B. communicates the results to decision makers
C. processes information into reports
D. all of the above. Correct Answer: D
Which of the following is not an external user of a business's financial information?
A. Taxing authorities B. Customers
C. Employees
D. Investors Correct Answer: C
Which statement below best describes the accounting equation?
A. The change in retained earnings equals net income less dividends.
B. Equality of revenue and expense transactions over time.
C. Financing activities equal investing and operating activities.
D. Resources of the company equal creditors' and owners' claims to those resources. Correct Answer: D
Owners' claims to the company's resources are referred to as:
A. Liabilities.
B. Assets.
C. Stockholders' equity.
D. Net liabilities. Correct Answer: C
If total assets of a company equal $25,000 and total stockholders' equity equals $10,000, then total liabilities equal $15,000.
A. True
B. False Correct Answer: A
Amounts owed to suppliers for supplies purchased on account are defined as a(n):
A. Revenue.
B. Asset.
C. Liability.
D. Expense Correct Answer: C
If total liabilities of a company equal $29,000 and total stockholders' equity equals $15,000, then total assets equal $14,000.
A. True
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