Financial Transactions and Procedures Quiz

A transaction involving the exchange of money for goods or services.

A measure of the profitability of an investment.

Provides a summary of a company's financial performance over a specific period.

The ease with which assets can be converted into cash without affecting their market value.

A master record that provides a complete record of all financial transactions.

Expenses incurred from a company's normal business operations.

To ensure that financial statements are prepared accurately and fairly represent the financial position of a company.

Represents the amount a company owes to its suppliers for goods and services purchased on credit.

Indicates a company's ability to use its near cash or quick assets to extinguish its current liabilities.

A measure of a company's operating performance before non-operating expenses.

Reports a company's cash inflows and outflows during a specific period.

Measures a company's profitability relative to the equity invested by shareholders.

To maintain the accounting equation, if one liability increases, another must also increase.

Spreading out the cost of an intangible asset over its useful life.