INTRODUCTİON TO BUSİNESS - Deneme Sınavı - 5

An audit is an examination of a company’s financial records. The independent accountants then issue an opinion that states whether or not the financial statements give a fair picture of the company’s financial situation.

The accounting equation is the formula used to capture the company’s financial position at any point in time. The accounting equation shows how assets, liabilities, and owners’ equity are related to each other.Assets must equal the sum of liabilities and owner’s equity. Liabilities appear before owners’ equity in the basic accounting equation because they are paid first if a business is liquidated.

A transaction is an event that affects the financial position of the enterprise and requires recording.

Contributed capital is the amount that the owners have invested in the company.

A balance sheet or statement of financial position is a financial statement that reports a business’s assets, liabilities, and equity on a specific date.

Current assets:
Cash and cash equivalents 
Trade receivables 
-Due from related parties 
-Trade receivables, third parties 
Derivative instruments 
Inventories 
Prepaid expenses 
Current income tax assets 
Other current assets 
Assets held for sale

Non-current assets:
Financial investments 
Trade receivables 
Derivate instruments 
Associates 
Investment properties 
Property, plant and equipment 
Intangible assets 
-Goodwill 
-Other intangible assets 
Deferred tax assets

Efficiency ratios (Activity ratios) measure how efficiently a firm manages its assets. Efficiency ratios use turnover measures to show how efficiently
a company operates and uses its assets.

A measure of the amount of long-term financing provided by debt relative to equity is called the debt-to-equity ratio.

Operating profit also known as earnings before interest and tax (EBIT) is a part of a company’s income statement. The operating profit margin is an important indicator of the company’s earning power from its current operations. Operating profit is any income directly related to the operations of the business. The operating profit margin (OPM) is a measure of overall operating efficiency and incorporates all of the expenses associated with ordinary business activities.

Bookkeeping is the recording of a firm’s financial transactions which usually involves only the recording of budgetary events.

Cash flows statement is one of the outputs of the accounting system process

Sales documents are one of the inputs accounting documents of the accounting system process

Current and prospective investors (owners) use accounting information to make decisions to buy, hold, or sell stock.

Labor unions want to know whether the owners have the ability to pay increased wages and benefits.

Managers are the primary users of "Managerial Accounting"

The accounting cycle requires summarizing of the entries pertaining to a particular period in a trial balance. A trial balance is essentially a list of all accounts and provides an overview of the various types of financial transactions entered into by any organization during a period.

The accounting equation is the formula used to capture the company’s financial position at any point in time.

The operating cycle of a business is the time between buying and/or creating a product or service and receiving the cash on its sale.

Gross profit is the difference between net sales and the cost of goods sold

Accounting consists of three basic activitieS; it identifies, records and communicates the economic events of an organization to interested users. The correct answer is A.

External users of accounting are:

The correct answer is B.