MGT 8803 Financial
Accounting Exam
(detailed & elaborated)
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
Liabilities - CORRECT ANSWER-Sources of funding provided by the creditors; creditors claims
Owners' Equity - CORRECT ANSWER-sources provided by the owners; owner's claims
Liquidity - CORRECT ANSWER-the closer they are to being cash, the more liquid they are
Cost Principle - CORRECT ANSWER-Assets are valued at their historical cost
Current vs Long Term Assets - CORRECT ANSWER-conversion to cash within 1 year
Current vs Long Term Liabilities - CORRECT ANSWER-due date within 1 year
Capital Stock - CORRECT ANSWER-what the company received when selling shares of stock
Retained Earning - CORRECT ANSWER-beg RE + NI - Dividends
, Dividends - CORRECT ANSWER-distribution of earnings, and only occurs when the Board of
Directors decides to distribute the earnings
Statement of Stockholders' Equity - CORRECT ANSWER-Beg SE + NI - dividends + Issurance of
Capital Stock
Cash Basis Accounting - CORRECT ANSWER-revenues will be recognized when cash is received,
and expenses are recognized when cash is paid out
Income Statement - CORRECT ANSWER-Uses Accrual Accounting; Shows the results of a
company's operations (success) over a period of time
Revenue Recognition Principle - CORRECT ANSWER-Revenue is recognized when earned;
earning process is considered to be complete even though cash has not yet been collected
Matching Principle - CORRECT ANSWER-Costs are reported as expenses in the same time period
as their related revenues
Net Income - CORRECT ANSWER-revenues - expenses
Gross Margin - CORRECT ANSWER-Net Sales - COGS
Operating Income - CORRECT ANSWER-Gross Margin - Operating Expenses
EPS - CORRECT ANSWER-Earnings Per Share; net income/# shares of stock
Accounting Exam
(detailed & elaborated)
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
Liabilities - CORRECT ANSWER-Sources of funding provided by the creditors; creditors claims
Owners' Equity - CORRECT ANSWER-sources provided by the owners; owner's claims
Liquidity - CORRECT ANSWER-the closer they are to being cash, the more liquid they are
Cost Principle - CORRECT ANSWER-Assets are valued at their historical cost
Current vs Long Term Assets - CORRECT ANSWER-conversion to cash within 1 year
Current vs Long Term Liabilities - CORRECT ANSWER-due date within 1 year
Capital Stock - CORRECT ANSWER-what the company received when selling shares of stock
Retained Earning - CORRECT ANSWER-beg RE + NI - Dividends
, Dividends - CORRECT ANSWER-distribution of earnings, and only occurs when the Board of
Directors decides to distribute the earnings
Statement of Stockholders' Equity - CORRECT ANSWER-Beg SE + NI - dividends + Issurance of
Capital Stock
Cash Basis Accounting - CORRECT ANSWER-revenues will be recognized when cash is received,
and expenses are recognized when cash is paid out
Income Statement - CORRECT ANSWER-Uses Accrual Accounting; Shows the results of a
company's operations (success) over a period of time
Revenue Recognition Principle - CORRECT ANSWER-Revenue is recognized when earned;
earning process is considered to be complete even though cash has not yet been collected
Matching Principle - CORRECT ANSWER-Costs are reported as expenses in the same time period
as their related revenues
Net Income - CORRECT ANSWER-revenues - expenses
Gross Margin - CORRECT ANSWER-Net Sales - COGS
Operating Income - CORRECT ANSWER-Gross Margin - Operating Expenses
EPS - CORRECT ANSWER-Earnings Per Share; net income/# shares of stock
