Quiz: The Role of Accounting in Business Test Papers All Solved Graded A+.

An accountant will analyze and interpret financial information, prepare budgets and financial statements, conduct audits, and provide tax services. These activities are examples of the process called: - Answer Accounting In 1494, who wrote a book on bookkeeping and accounting that became a teaching text for the next 100 years? - Answer Luca Pacioli What can a business accomplish if it establishes up-to-date running totals? - Answer With current financial information available when it needs it, many business questions can be answered quickly. Which external user determines if a business has the ability to pay its debts? - Answer Creditors and lenders What type of accounting has a fixed format and a lack of timeliness as its disadvantage? - Answer Financial Accounting What is the tax on gasoline, cigarettes, and alcohol called? - Answer Excise tax What formula is one of the major cornerstones of financial accounting? - Answer Accounting Equation Cash, accounts receivables, inventory, and supplies are examples of: - Answer Current Assets Accounts payable, wages payable, and payroll taxes payable are examples of: - Answer Current Liabilities Which component of owner's equity is when the owner takes out cash from the business account for personal use? - Answer Withdrawal An accounting firm, law firm, and a dry cleaning business are examples of a: - Answer Service Companies