5 Written Questions

1. Money is "expensed" if it is gone forever- if there remains no useful asset as a result of the spending. The opposite of capitalized.
2. When numbers are 'netted', they combine so that the negative numbers get subtracted from the positive numbers.
3. The cost of business airplane fares, trains, and long-distance buses.
4. A tool to keep track of the ups and downs in accounts. The ups go on one side of the T and the downs on the other side.
5. Sales - Cost of Goods Sold= Gross Profit

5 Matching Questions

1. Withdrawal
2. Inventory
3. Statement of Owner's Equity
4. Percentage Analysis
5. Travel Expense

1. a Money that the owner takes from the business, or money in the business account that the owner spends on personal bills.
2. b A financial statement that calculates an end-of-period balance of the owner's equity account.
3. c A financial statement analysis technique in which one number is assigned 100% and all other numbers are expressed as a percentage of the first number. In balance sheets, they key number is total assets. In income statements, the key number is sales.
4. d A supply of items a business has on hand.
5. e The cost of living while away from home on business.

5 Multiple Choice Questions

1. The amount of long-lived assets used up during operations.
   1. Expensed
   2. Travel Expense
   3. Depreciation Expense
   4. Transportation Expense
2. An income account that explains the increase in business assets as a result of selling goods.
   1. Net
   2. Sales
   3. Expenses
   4. Netted
3. Sales - Cost of Goods Sold= Gross Profit
   Gross Profit - Expenses= Net Income
   1. Cost Of Goods Sold
   2. Income Statement
   3. Income Statement Formula
   4. Inventory
4. The official list of all business accounts.
   1. Contra Account
   2. Chart of Accounts
   3. T-account
   4. Account
5. The cost to the business of the goods that it sells. (CGS)
   1. Cost Of Goods Sold
   2. Chart of Accounts
   3. Gross Profit
   4. Contra Account

5 True/False Questions

1. Book Value of a Long Lived Asset → The cost of business airplane fares, trains, and long-distance buses.

   True        False

2. Income → Income - Expenses= Net Income

   True        False

3. Account → A tool to keep track of the ups and downs in accounts. The ups go on one side of the T and the downs on the other side.

   True        False

4. Net → A word that means a subtraction has occurred.

   True        False

5. Income Statement → The financial report that shows the result of business operations over a period of time.

   True        False