Matching Questions

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Matching Questions

 207. Match the following terms with the appropriate definition. 


1. Social      The acquisition and disposing of resources that an    
responsibility  organization uses to acquire and sell products and
services. 
2. Internal users       Beliefs that distinguish right from wrong.     
3. Operating      The part of accounting that involves recording    
activities  transactions and events, either electronically or
manually. 
4. Financing      Persons using accounting information who are    
activities  directly involved in managing the organization. 
5. Investing      An information and measurement system that   
activities  identifies, records and communicates relevant reliable
and comparable information about an organization's
business activities. 
6. Accounting       Provide the means organizations use to pay for    
resources such as land, buildings, and equipment to carry
out plans. 
7. Ethics       Concern for the impact of actions on society.     
8. Recordkeeping       The use of resources to research, develop, purchase,    
produce, distribute, and market products and services. 
9. External users       Persons using accounting information who are not    
directly involved in the running of the organization. 
208. Match each of the following terms with the most appropriate definition. 
1. Risk       A financial ratio useful in evaluating management,    
analyzing and forecasting profits, and planning
activities. 
2. Liabilities       Area of accounting aimed at serving external users.    
3. Net income       Costs of assets or services used to earn revenues.     
4. Expenses       The uncertainty about the expected return to be    
earned. 
5. Managerial      Creditor's claims on a company's assets.     
accounting 
6. Planning       Defining the idea, goals, and actions of an    
organization. 
7. Return on      The excess of revenue over expenses     
assets 
8. Financial      Area of accounting aimed at serving the decision    
accounting  making needs of internal users. 
209. The following is a list of selected users of accounting information. Match the
appropriate user to the following information needs. 
1. Production      Judge the soundness of a customer before making    
Managers  sales on credit. 
2. Lenders       Measuring risk and return of loans.     
3. Suppliers       Assessing the risk and return of acquiring shares.     
4. Employees       Monitor costs and ensure quality.     
5. Shareholders       Assessing employment opportunities.     
210. Match each of the following transactions and events to the accounting principle
applicable to recording and reporting them.

a. Business entity principle


b. Objectivity principle
c. Cost principle
d. Going concern principle
e. Monetary unit principle
f. Revenue recognition principle 
1. An insurance company receives insurance premiums for six future        
month's worth of coverage. 
2. Helen Cho, a sole proprietor, pays for her daughter's preschool out of
business funds. 
3. To make the balance sheet look better, Helen Cho added several
thousand dollars to the Equipment account that she believed was
undervalued. 
4. A building is for sale at $480,000. An appraisal is given for
$450,000. 
5. Mayan Imports receives a shipment from Mexico. The invoice is
stated in pesos. 
 211. Match the following definitions with terms 1 through 8. Place the letter that identifies
the best definition in the blank space next to the term.
a. The accounting principle that requires assets and services to be recorded initially at the
cash or cash-equivalent amount given in exchange.
b. A principle that requires the information in financial statements to be supported by
independent unbiased evidence.
c. Gross increase in equity from a company's earnings activities.
d. A principle that requires financial statements to reflect the assumption that the business
will continue operating instead of being closed or sold.
e. Resources owned or controlled by a company that are expected to yield future benefits.
f. A financial statement that reports the changes in equity over the reporting period; including
increases such as owner investment and net income and for decreases such as owner
withdrawals or net loss.
g. Assets an owner takes from the company for personal use.
h. Another term for equity. 
1. Net assets 
2. Owner withdrawal 
3. Objectivity principle 
4. Assets 
5. Revenues 
6. Cost principle 
7. Statement of owner's equity. 
8. Going-concern principle 
212. Match the following definitions with the terms 1 through 9. Place the letter that
identifies the best definition in the blank space next to the term.
a. The relation between a company's assets, liabilities, and equity.
b. An exchange of value between two parties.
c. The principle that assumes transactions and events can be expressed in money units.
d. A financial statement that reports the changes in equity over the reporting period; adjusted
for increases such as owner investment and net income and for decreases such as owner
withdrawals or net loss.
e. A financial statement that lists cash inflows (receipts) and cash outflows (payments); the
cash flows are arranged by operating, investing, and financing activities.
f. Creditor's claims on assets.
g. The cost of assets or services used to earn revenue.
h. The principle that requires a business to be accounted for separately from its owners.
i. The principle that revenue is recognized when earned. 
1. Business transaction 
2. Accounting equation 
3. Liabilities 
4. Statement of owner's equity 
5. Revenue recognition principle 
6. Monetary unit principle 
7. Expenses 
8. Statement of cash flows 
9. Business entity principle 
213. Identify each of the following business activities 1 through 6 into the appropriate
category a, b, and c.
a. Operating
b. Investing
c. Financing 
1. Paid employee wages. 
2. Purchase of land. 
3. Sale of used equipment. 
4. Borrowed money from a bank on a long-term note. 
5. Paid utilities expenses. 
6. Withdrawal of funds by owners. 
214. Match each of the following items 1 through 8 with the financial statement a through d
in which each item would most likely appear. An item may appear on more than one
statement.
a. Income statement
b. Statement of owner's equity
c. Balance sheet
d. Statement of cash flows 
1. Cash from investing activities. 
2. Equity. 
3. Revenues. 
4. Liabilities. 
5. Cash from operating activities. 
6. Withdrawals. 
7. Costs and expenses. 
8. Assets. 
215. Select the appropriate financial statement for each of the following accounts.
(Note: Some items may appear on more than one financial statement.)

a. Income statement
b. Statement of owner's equity
c. Balance sheet
d. Statement of cash flows 
1. Rent Expense 
2. Withdrawals 
3. Notes payable 
4. Cash 
5. Accounts receivable 
6. Jay Miller, Capital 
7. Supplies Expense 
8. Fees earned 
216. Select the appropriate financial statement for each of the following items.
(Note: some items may appear on more than one financial statement.)

a. Income statement
b. Statement of owner's equity
c. Balance sheet
d. Statement of cash flows 
1. Consulting Revenue 
2. Ahmad Khan, Capital 
3. Cash investments by owner 
4. Cash proceeds from a long-term loan 
5. Supplies 
6. Cash withdrawals by owner. 
7. Cash payments to purchase equipment 
8. Advertising Expense 
 217. Classify the following activities according to the appropriate section of the statement of
cash flows.

a. Operating activity
b. Investing activity
c. Financing activity 
1. Cash paid for withdrawals by owners. 
2. Cash paid for utilities. 
3. Cash received from a one-time sale of used office equipment. 
4. Cash paid for a delivery van to be used in the business. 
5. Cash received from owner contributions. 
6. Cash received from customers. 

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