Accounting Unit Summative Review

Basic Accounting Statements

100

1. This financial statement summarizes a company's revenue, expenses, and net income for a specific period.

Income Statement

200

2. The accounting equation that describes the relationship between assets, liabilities, and equity.

Assets = Liability + Equity

300

What is the number 1 important thing about the accounting equation

Both sides need to balance

400

1. A statement that tracks cash flows from operating, investing, and financing activities.

Cash Flow Statement

500

5. A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

Balance Sheet

Specific Entries

100

1. This term refers to money owed by customers to a company for goods or services provided on credit.

Accounts Receivable

200

2. The amount left over after subtracting a company's total expenses from its total revenue.

Net income

300

1. A company's debts or legal obligations that arise during business operations.

Liabilities

400

What are the three activities of a cash flow statement?

Investing, Financing, Operating

500

What is a decrease in net income called?

Net Loss

Misc

100

4. These professionals are responsible for recording, analyzing, and interpreting financial transactions for a company.

Accountants

200

What is another word for an accountant?

CPA

300

2. A legal business structure where one or more individuals share ownership and management responsibilities.

Partnership

400

Shares of a company is called

Stock

500

When you don't have cash for something, this is an alternative

Credit

Where does it belong?

100

Val starts her business by using $500 from her savings

Equity

200

Balance sheet:  She opens her store and sells $650 worth of inventory for $1100

$1100 under Assets

300

Income Statement:  Sales revenue $28,750

Revenue

400

Stock in a company

Equity

500

Where would Income earned from a sale of something, for example, show up on which statement?

Income Statement

True/False

100

True or False:  Rent is revenue

False

200

Anything of value and tangible that is owned is called equity

False

300

What are the three major financial statements?

Cash Flow, Balance sheet and income statement

400

True/False:  A cash flow statement allows investors to understand how a company's financial, investment, and operations are running

True

500

True/False:  Val rents a pop-up store for a week and spends $500 for the week. This would be a liability

True