An entity in the accounting system that is formed and administered as per commercial law in order to engage in business activities.
What is a business entity?
100
A function that consists of the manufacturing and conversion process of a company.
What is a production function?
100
The amount returned to an investor.
What is a return on investment?
100
The process of internal control of a company protecting business' assets and protecting documentation in a company.
What is physically controlling assets and documents?
100
Net income of a business can be found from an income statement.
What is a financial statement that we can find the net income of a business?
200
An underlying assumption in accounting.
What is going concern?
200
The function of a business that involves the review of employees and the hiring process of employees.
What is a human resource function?
200
The rate of return for ownership interest of common stock owners.
What is a return on owner's equity?
200
The process of maintaining proper documentation to provide adequate and accurate financial statements within a business.
What is maintaining adequate documents and records?
200
The process of confirming different amounts in different accounts.
What is bank reconciliation?
300
A currency unit issued as a coin or a bank note and is used as a standard unit of value and a unit of account.
What is a monetary unit?
300
The function of a business that involves the advertising aspect and sales of a company.
What is a marketing function?
300
The ratio that represents the percent of total sales revenue that a company retains after incurring direct costs.
What is a gross margin ratio?
300
The process of excluding aspects of a company due to a lack of completion and insufficient work.
What is separating incompatible functions?
300
The process of using efficient products in an efficient amount of time in a business.
What is value added time?
400
The assumption that complex business activities can be divided into quarterly and month financial statements.
What is periodicity?
400
A function that consists of the processes of acquiring and utilizing funds of a business.
What is a finance function?
400
A liquidity ratio that measures a company's ability to pay short-term and long-term liabilities and obligations.
What is a current ratio?
400
Removing a business tactic and function within a company due to the lack of work and completion.
What is an example of separating incompatible functions?
400
A deposit in transit can affect the business checking account balance.
What is an item that can affect the business checking account balance?
500
An example of this is using a business entity over a period of time with the assumption that it may complete all obligations.
What is an example of going concern?
500
An example of this function consists of the amount of manufacturing in a company and the necessary amount of products needed to be produced to receive profit.
What is an example of a production function?
500
The measure of how well a company can meet its short-term liabilities?
What is a quick ratio?
500
The assurance that management sets activities within the business that adheres to the established guidelines.
What is requiring proper authorization?
500
Report of independent auditors states the financial status of a company.
What is financial statement aspect of the report of independent auditors?