The Accounting Game Flashcards

Which of the following items is not found on a Balance Sheet?

Gross Profit

Which accounting system most accurately reflects profitability?

Accrual Accounting

An account receivable is:

an Asset

Owner’s Equity

a Liability

Cash

Which of the following is most important to the daily operations of a business?

Net Profit

When people speak about the bottom line, they are referring to:

is the actual amount of money a business keeps after subtracting all expenses from its total revenue.

A prepaid expense is:

an Asset

Why is a prepaid expense an Asset?

is an asset because it represents a future economic benefit or value that a company has paid for in advance but not yet consumed.

FIFO (First-In, First-Out)

an inventory accounting method that assumes the oldest goods purchased or produced are the first ones sold

LIFO (Last-In, First-Out)

an inventory valuation method where the most recently purchased or produced items are recorded as sold first.

Is LIFO/FIFO a method of:

Inventory Evaluation

Expense

Which would you find on an Income Statement?

Which of the following expenses does not affect your cash position in running a business:

Depreciation Expense (no money is paid out when you record it.)