Accounting - Unit 1 Milestone 2021/2022

__________ is correcting errors and omissions and matching expenses with the correct revenue period. Correct answer- Adjusting 2. The _________ provides a numerical label for each account, so that activity can easily be tracked for a given account. Correct answer- Chart of Accounts 3. Because Mike is only accountable for the $20,000 he invested in his friend Matt's company, the two have created which of the following business types? Correct answer- Limited Liability Partnership 4. Which of the following statements is true about GAAP? Correct answer- GAAP contains the procedures, standards and rules for accounting information in the U.S. 5. A Program Manager and a Vice President discussing the costs associated with the completion of a recent project, so that future cost estimates can be made, is an example of which of the following? Correct answer- Managerial Accounting 6. The bookkeeper for Dr. Mark Scholz, DVM, informed the veterinarian that the business' revenue for the day was $18,920. Which statement below best describes how the bookkeeper would record this? Correct answer- $18,920 would be recorded on the credit side of the revenue account. 7. An auditor's role is which of the following? Correct answer- To objectively analyze a company's accounting data 8. Money borrowed from a bank to purchase a new machinery would be considered which of the following? Correct answer- Liabilities 9. Which of the following kinds of companies would use a 990 tax form? Correct answer- Non-Profit 10. Which illustration below correctly shows Paula opening her baby clothing store with a monetary investment of $9,250.00? Correct answer- Owner Capital 11. Which of the following is a violation of the Sarbanes-Oxley Act? Correct answer- Not reporting financial information about a business 12. Who is credited with documenting the double-entry accounting system? Correct answer- Luca Pacioli 13. Which image below correctly shows a general ledger? Correct answer- Owner's Investment: $1,800 Prepaid expenses: $1,500 Owners Withdrawal: $3,000 14. Which of the following is NOT a good use of a T-account? Correct answer- Transferring final balances of accounts to the company's financial records 15. Which of the following groups of accounts have a natural credit balance? Correct answer- Liabilities, equity and revenue 16. Which f the following organizations might Daniel be interested in joining if he recently passed his certified public accountancy exams? Correct answer- AICPA 17. Which one of the following statements is true regarding permanent accounts? Correct answer- They document resources for longer than one fiscal timeframe