GAAP refers to:

a. General Association of Accounting Professionals

b. Generally Accepted Accounting Profession

c. Rules that assure consistency in reporting financial history

d. Rules that are set up to make sure each company reports

their own financial history.

Accounting is a process that:

a. Reports the profit and loss a firm makes

b. Reports the financial history of the firm

c. Reports information to external users of the financial statements.

d. Reports to the S.E.C.

There are four basic financial statements required by GAAP. They are:

a. Balance Sheet, Income Statement, Cash Flow Statement and

a Trial Balance.

b. Balance Sheet, Income Statement, Cash Flow Statement and

a Work Sheet.

c. Balance Sheet, Income Statement, Cash Flow Statement and

a Statement of Change to Owners Equity.

d. Balance Sheet, Income Statement, Cash Flow Statement and

a Post Close Trial Balance.

The three steps in transaction analysis are:

a. Determine what accounts are affected, what their balance is and how much they have changed.

b. Determine what accounts are affected, what classification

the accounts are and how their balance has changed up or

down.

c. Check the chart of accounts, determine if the entry is a

Dr. or Cr., determine if the balance is going up or down

d. All of the above.

A Deferred Revenue is:

a. A revenue that has been received and earned.

b. A revenue that will not be collected in the future.

c. A revenue that has been received, but is a liability until earned.

d. A revenue that has been earned but not received.

In the Accrual Method of Accounting:

a. Adjusting entries have to be made that would not have to

be done in a Cash System.

b. You record a revenue when you earn it not when you are

paid for it.

c. Gives you a better idea of your future financial position than the Cash Method.

d. All of the above.