FAC 3701 Accounting And Financial
Statements Questions And Answers
Per Share Data - CORRECT ANSWER- data used by investors to compare the
performance of one company with another on an equal, per share basis
Earnings Per Share - CORRECT ANSWER- profit/number of stock shares
outstanding
Dividends Per Share - CORRECT ANSWER- the actual cash received for each
share owned
Accounting - CORRECT ANSWER- the recording, measurement, and interpretation
of financial information
CPA - CORRECT ANSWER- an accountant who has passed certain examinations
and met all other statutory and licensing requirements of a United States state to be
certified by that state
Private Accountants - CORRECT ANSWER- accountants employed by large
corporations, government agencies, and other organizations to prepare and analyze
their financial statements
Certified Management Accountants - CORRECT ANSWER- private accountants
who, after rigorous examination, are certified by the National Association of
Accountants and who have some managerial responsibility
Managerial Accounting - CORRECT ANSWER- the internal use of accounting
statements by managers in planning and directing the organization's activities
Cash Flow - CORRECT ANSWER- the movement of money through an
organization over a daily, weekly, monthly, or yearly basis
Budget - CORRECT ANSWER- an internal financial plan that forecasts expenses
and income over a set period of time
Annual Report - CORRECT ANSWER- summary of a firm's financial information,
products, and growth plans for owners and potential investors
Assets - CORRECT ANSWER- a firm's economic resources, or items of value that it
owns, such as cash, inventory, land, equipments, buildings and other tangible and
intangible things
Liabilities - CORRECT ANSWER- debts that a firm owes others
Owner's Equity - CORRECT ANSWER- =assets-liabilities
Accounting Equation - CORRECT ANSWER- assets=liabilities+owner's equity
Double-Entry Bookkeeping - CORRECT ANSWER- a system of recording and
classifying business transactions that maintains the balance of the accounting equation
Accounting Cycle - CORRECT ANSWER- 1. Examine source documents
2. Record transactions
3. Post transactions
4. Prepare financial statements
Journal - CORRECT ANSWER- a time-ordered list of account transactions
Statements Questions And Answers
Per Share Data - CORRECT ANSWER- data used by investors to compare the
performance of one company with another on an equal, per share basis
Earnings Per Share - CORRECT ANSWER- profit/number of stock shares
outstanding
Dividends Per Share - CORRECT ANSWER- the actual cash received for each
share owned
Accounting - CORRECT ANSWER- the recording, measurement, and interpretation
of financial information
CPA - CORRECT ANSWER- an accountant who has passed certain examinations
and met all other statutory and licensing requirements of a United States state to be
certified by that state
Private Accountants - CORRECT ANSWER- accountants employed by large
corporations, government agencies, and other organizations to prepare and analyze
their financial statements
Certified Management Accountants - CORRECT ANSWER- private accountants
who, after rigorous examination, are certified by the National Association of
Accountants and who have some managerial responsibility
Managerial Accounting - CORRECT ANSWER- the internal use of accounting
statements by managers in planning and directing the organization's activities
Cash Flow - CORRECT ANSWER- the movement of money through an
organization over a daily, weekly, monthly, or yearly basis
Budget - CORRECT ANSWER- an internal financial plan that forecasts expenses
and income over a set period of time
Annual Report - CORRECT ANSWER- summary of a firm's financial information,
products, and growth plans for owners and potential investors
Assets - CORRECT ANSWER- a firm's economic resources, or items of value that it
owns, such as cash, inventory, land, equipments, buildings and other tangible and
intangible things
Liabilities - CORRECT ANSWER- debts that a firm owes others
Owner's Equity - CORRECT ANSWER- =assets-liabilities
Accounting Equation - CORRECT ANSWER- assets=liabilities+owner's equity
Double-Entry Bookkeeping - CORRECT ANSWER- a system of recording and
classifying business transactions that maintains the balance of the accounting equation
Accounting Cycle - CORRECT ANSWER- 1. Examine source documents
2. Record transactions
3. Post transactions
4. Prepare financial statements
Journal - CORRECT ANSWER- a time-ordered list of account transactions
