Question 1

What are job tasks or functions of an accountant?

Accepted Answer

prepare and interpret financial records follow budgets make business decisions maintain and review business records prepare budgets

Question 2

What is the difference between account payable and accounts receivable?

Accepted Answer

accounts payable is how much you or business owes someone accounts receivable is how much a customer owes you

Question 3

What must a business do to survive?

Accepted Answer

operate at a profit attract individuals skillful enough to run the business

Question 4

What is the difference between management accounting and financial accounting?

Accepted Answer

management accounting reports information to managers of the company to assist in decision making, reports are for internal use only financial accounting reports information to external users (individuals not involved in day-to-day business operations), such as investors

Question 5

What is the accounting equation?

Accepted Answer

Assets = Liabilities + Owner's Equity What you own = How it was paid for

Question 6

Why is accounts receivable an asset?

Accepted Answer

because it is money that you will be receiving and cash is an asset

Question 7

entry level accounting job that prepares forms and reports

Accepted Answer

bookkeeper

Question 8

What is fiscal year?

Accepted Answer

aka financial year or budget year period used for calculating annual (yearly) financial statements in business or other organizations does not always begin in january and end in december runs over any 12 month period can be october thru september, august thru july, etc

Question 9

Penn State University sells most of their assets during football games. They sell $850 worth of sweathshirts, $1142 worth of blankets, and $999 worth of jerseys. They pay rent which is a fixed expense of $850, utilities which are a variable expense of $359 and supplies expense which is a variable of $2500. Did they make a profit or loss?

Accepted Answer

revenue: $2991 exenses: $3709 loss: $718

Question 10

Starbucks sells coffee and tea at the local shop. On Mondays they sell $700, Tuesdays they sell $857, Wednesday they sell $998 and Thursdays they sell $475. They have expenses of $854 for coffee supplies which is a variable, $1500 for rent which is a fixed expense, and $540 for cups which is a variable expense. Did they make a profit or loss?

Accepted Answer

revenue: $3030 expense: $2894 profit: $136

Question 11

Toys R Us sold all of its assets on black friday. They sold 457 barbie dolls $19.99 each, 884 hot wheel cars at $1.99 each, 441 video games at $29.99 each and $8874 worth of Frozen merchandise. They paid their mortage payment of $11524, a maintenance bill for the heater which is a periodic expense of $1500, real estate taxes of $7451 and telephone bill of $150. Did they make a profit or loss?

Accepted Answer

revenue: 9135.43 + 1759.16 + 13225.59 + 8874 = 32994.18 expenses: 20625.00 profit: $12369.18

Question 12

Chik fil et had cash outflow of $874, $21, $552, and $125. They had cash inflow of $129, $367, $11, and $99. Did they bring in or spend more?

Accepted Answer

inflow: $606 outflow: 1572 spent more/ loss: -966

Question 13

general increase in value of property that occurs over time

Accepted Answer

appreciation

Question 14

decrease in value of property as it becomes old

Accepted Answer

depreciation

Question 15

money you owe for something buy now, pay later loans/notes or accounts payable

Accepted Answer

liability

midterm - accounting Flashcards

(26 cards)