1. According to the Week 5 lecture, why do mostbusinesses fail within the first few years?
2. If an Accounts Receivable accountis not eventually converted into cash, what happens to the amount of money inthe account after a pre-determined period of time?
3. It’s possible to make a lot of sales, payminimal expense, and still go bankrupt. True or False?
4. Most businesses practice Accrual Base orCash Base Accounting?
5. What is the first step when reconciling yourcash account/bank statement?
6. What is the second step when reconcilingyour cash account/bank statement?
7. What is the third step when reconciling yourcash account/bank statement?
8. What is the fourth step when reconcilingyour cash account/bank statement?
9. How often should a reconciliation of thecash account occur?
10. If a client writes the company a bad checkto pay for services/products, and you charge them an administrative fee to makesure the amount eventually gets paid. What type of account is credited?
11. According to the Week 6 lecture, how can abusiness increase sales of the company?
12. What kind of a fee do you have to pay ifyou accept credit cards?
13. What term is used to describe the value ofa company has through its reputation?
14. Would goodwill be considered a tangible oran intangible asset?
15. What is the equivalent of depreciation foran intangible asset?
16. What is the equivalent of depreciation fora natural resource?
17. What are the three items needed tocalculate depreciation?
18. A piece of equipment is purchased for$10,000, has a salvage value of $2,000, and an estimated useful life of 4years. Using the straight-line depreciation method, how much isdepreciated per year for the next 4 years?
19. A piece of equipment is purchased for $10,000,has a salvage value of $2,000, and an estimated useful life of 4 years. Using the double-declining balance method, how much is depreciated peryear for the next 2 years?
20. How does an “Accumulated Deprecation”account get increased; debit or credit?
21. What are the three levels of the Cash FlowStatement?
22. What type of income statement separates outthe “Gross Margin”, “Operating Income” and “Net Income”?
23. What does FUTA stand for?
24. What does FICA stand for?
25. What amount is income capped at to pay FICA– Social Security Tax on?
26. What is the term given to the borrower of abond?
27. What is the term given to the lender of abond?
28. What is the interest rate called which ismultiplied by the bond’s face value when issuing pre-determined payments to thebondholder?
29. What is the amount to pay off the bond(debt) when it is more than the face value?
30. What is the amount to pay off the bond(debt) when it is less than the face value?
31. What step takes place after the accountantanalyzes the transaction (Step 1).
32. What is the step before the final step(Step 8: Close the Books).
33. Which financial statement displays how theaccounting equation balances?
34. Are revenue, expense, and withdrawalaccounts temporary or permanent accounts?
35. Are cash, equipment, accounts payable, andcapital accounts temporary or permanent accounts?
36. The General ___________ is a diary of eachspecific account from under each component of the accounting equation.
37. What are the three reports within theAccounting Worksheet?
38. What is the report called which is thepreliminary to the Income Statement and Balance Sheet (it’s contained in theAccounting Worksheet).
39. What account are the temporary accountsclosed out to before everything is taken to Retained Earnings?
40. What is the most fundamental lesson inwhich the accounting profession is built off of?
