ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
"Other Assets" - ANSWER Long-term assets that are not suitable for reporting under
any of the previous classifications
Accounting - ANSWER A system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in making economic
decisions."
Accounting Equation - ANSWER Assets = Liabilities + Owners' Equity
Accounts Payable - ANSWER The flip side of accounts receivable—when one
company sells on credit, creating for itself an account receivable, the company on the other
side of the transaction is buying on credit, creating an account payable.
Accounts Receivable - ANSWER Amounts owed to a business by its credit customers
and are usually collected in cash within 10 to 60 days.
Accrual Accounting - ANSWER The process that accountants use in adjusting raw
transaction data into refined measures of a firm's economic performance.
Accumulated Depreciation - ANSWER Reflects the wear and tear, or depreciation, of
these items since they were originally purchased.
1
,Accumulated Other Comprehensive Income - ANSWER The grouped together and
reported changes which companies experience increases and decreases in equity each year
because of the movement of market prices or exchange rates
Activity-based Costing (ABC) - ANSWER A method of attributing overhead costs to
products based on measurable factors that relate to activities that create overhead costs.
Additional Paid-in Capital - ANSWER Invested by stockholders that exceeds the par
value of the issued shares.
American Institute of Certified Public Accountants (AICPA) - ANSWER The
professional organization of certified public accountants in the United States.
Asset - ANSWER Probable future economic benefit obtained or controlled by a
particular entity as a result of past transactions or events.
Asset Mix - ANSWER The proportion of total assets in each asset category, is
determined to a large degree by the industry in which the company operates.
Asset Turnover - ANSWER Sales divided by assets and is interpreted as the number
of dollars in sales generated by each dollar of assets.
Assets - ANSWER Assets are the firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a particular entity as a result
of past transactions or events
Assets-to-equity Ratio - ANSWER Assets divided by equity and is interpreted as the
number of dollars of assets acquired for each dollar invested by stockholders.
2
, Audit Committee - ANSWER Members of a company's board of directors who are
responsible for dealing with the external and internal auditors.
Average Collection Period - ANSWER Shows the average number of days that elapse
between sale and cash collection.
Balance Sheet - ANSWER A listing of an organization's assets and of its liabilities at a
certain time.
Batch-level Activities - ANSWER Activities that take place in order to support a batch
or production run, regardless of the size of the batch.
Book Value - ANSWER The book value of an asset is the asset's cost minus the
asset's accumulated depreciation.
Bookkeeping - ANSWER The preservation of a systematic, quantitative record of an
activity.
Break-even Point - ANSWER The amount of sales at which total costs of the number
of units sold equal total revenues; the point at which there is no profit or loss.
Capital Budgeting - ANSWER Systematic planning for long-term investments in
operating assets.
Capital Lease Obligations - ANSWER A long-term liability in the balance sheet.
Cash - ANSWER Coins and currency as well as the balances in company checking and
savings accounts.
3
"Other Assets" - ANSWER Long-term assets that are not suitable for reporting under
any of the previous classifications
Accounting - ANSWER A system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in making economic
decisions."
Accounting Equation - ANSWER Assets = Liabilities + Owners' Equity
Accounts Payable - ANSWER The flip side of accounts receivable—when one
company sells on credit, creating for itself an account receivable, the company on the other
side of the transaction is buying on credit, creating an account payable.
Accounts Receivable - ANSWER Amounts owed to a business by its credit customers
and are usually collected in cash within 10 to 60 days.
Accrual Accounting - ANSWER The process that accountants use in adjusting raw
transaction data into refined measures of a firm's economic performance.
Accumulated Depreciation - ANSWER Reflects the wear and tear, or depreciation, of
these items since they were originally purchased.
1
,Accumulated Other Comprehensive Income - ANSWER The grouped together and
reported changes which companies experience increases and decreases in equity each year
because of the movement of market prices or exchange rates
Activity-based Costing (ABC) - ANSWER A method of attributing overhead costs to
products based on measurable factors that relate to activities that create overhead costs.
Additional Paid-in Capital - ANSWER Invested by stockholders that exceeds the par
value of the issued shares.
American Institute of Certified Public Accountants (AICPA) - ANSWER The
professional organization of certified public accountants in the United States.
Asset - ANSWER Probable future economic benefit obtained or controlled by a
particular entity as a result of past transactions or events.
Asset Mix - ANSWER The proportion of total assets in each asset category, is
determined to a large degree by the industry in which the company operates.
Asset Turnover - ANSWER Sales divided by assets and is interpreted as the number
of dollars in sales generated by each dollar of assets.
Assets - ANSWER Assets are the firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a particular entity as a result
of past transactions or events
Assets-to-equity Ratio - ANSWER Assets divided by equity and is interpreted as the
number of dollars of assets acquired for each dollar invested by stockholders.
2
, Audit Committee - ANSWER Members of a company's board of directors who are
responsible for dealing with the external and internal auditors.
Average Collection Period - ANSWER Shows the average number of days that elapse
between sale and cash collection.
Balance Sheet - ANSWER A listing of an organization's assets and of its liabilities at a
certain time.
Batch-level Activities - ANSWER Activities that take place in order to support a batch
or production run, regardless of the size of the batch.
Book Value - ANSWER The book value of an asset is the asset's cost minus the
asset's accumulated depreciation.
Bookkeeping - ANSWER The preservation of a systematic, quantitative record of an
activity.
Break-even Point - ANSWER The amount of sales at which total costs of the number
of units sold equal total revenues; the point at which there is no profit or loss.
Capital Budgeting - ANSWER Systematic planning for long-term investments in
operating assets.
Capital Lease Obligations - ANSWER A long-term liability in the balance sheet.
Cash - ANSWER Coins and currency as well as the balances in company checking and
savings accounts.
3
