MBA 510 CORE MAIN EXAMINATION QUESTIONS
AND ANSWERS SURE A+
✔✔Going Concern Assumption - ✔✔The assumption that the company will continue in
operation for the foreseeable future.
✔✔4 accounting assumptions - ✔✔going concern, monetary unit, time period, business
entity
✔✔cost-benefit constraint - ✔✔prescribes that only information with benefits of
disclosure greater than the costs of providing it need be disclosed
✔✔Assets - ✔✔resources owned by a business. Expected to yield future benefits
✔✔Liabilities - ✔✔Amounts owed to creditors. obligations to provide assets, products,
or services to others.
✔✔Equity - ✔✔The owners claim on assets and is equal to assets minus liabilities.
✔✔Accounting Equation - ✔✔Assets = Liabilities + Equity
✔✔External Transactions - ✔✔exchanges of value between two entities, which cause
change in the accounting equation
, ✔✔internal transactions - ✔✔exchanges within an entity, which may or may not affect
the accounting equation
✔✔Events - ✔✔happenings that affect the accounting equation and are reliably
measured
✔✔Income Statement - ✔✔A financial statement showing the revenue and expenses for
a fiscal period.
✔✔Statement of Retained Earnings - ✔✔Reports the way that net income and the
distribution of dividends affected the financial position of the company during the
accounting period.
✔✔Balance Sheet - ✔✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
✔✔Statement of Cash Flows - ✔✔A financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific
period of time.
✔✔Return on assets equation - ✔✔net income/average total assets
✔✔Securities and Exchange Commission (SEC) - ✔✔monitors the stock market and
enforces laws regulating the sale of stocks and bonds
✔✔Source Documents - ✔✔identify and describe transactions and events entering the
accounting process
✔✔General ledger - ✔✔a record of all accounts used by a company
✔✔The Chart of accounts - ✔✔a list of all ledger accounts and has an identification
number assigned to each account
✔✔T-Account - ✔✔represents a ledger account and is a tool used to understand the
effects of one or more transactions
✔✔account balance - ✔✔the difference between the total debits and the total credits in
an account
✔✔double-entry accounting - ✔✔demands the accounting equation remain in balance
✔✔journal - ✔✔complete record of each transaction in one place
AND ANSWERS SURE A+
✔✔Going Concern Assumption - ✔✔The assumption that the company will continue in
operation for the foreseeable future.
✔✔4 accounting assumptions - ✔✔going concern, monetary unit, time period, business
entity
✔✔cost-benefit constraint - ✔✔prescribes that only information with benefits of
disclosure greater than the costs of providing it need be disclosed
✔✔Assets - ✔✔resources owned by a business. Expected to yield future benefits
✔✔Liabilities - ✔✔Amounts owed to creditors. obligations to provide assets, products,
or services to others.
✔✔Equity - ✔✔The owners claim on assets and is equal to assets minus liabilities.
✔✔Accounting Equation - ✔✔Assets = Liabilities + Equity
✔✔External Transactions - ✔✔exchanges of value between two entities, which cause
change in the accounting equation
, ✔✔internal transactions - ✔✔exchanges within an entity, which may or may not affect
the accounting equation
✔✔Events - ✔✔happenings that affect the accounting equation and are reliably
measured
✔✔Income Statement - ✔✔A financial statement showing the revenue and expenses for
a fiscal period.
✔✔Statement of Retained Earnings - ✔✔Reports the way that net income and the
distribution of dividends affected the financial position of the company during the
accounting period.
✔✔Balance Sheet - ✔✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
✔✔Statement of Cash Flows - ✔✔A financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific
period of time.
✔✔Return on assets equation - ✔✔net income/average total assets
✔✔Securities and Exchange Commission (SEC) - ✔✔monitors the stock market and
enforces laws regulating the sale of stocks and bonds
✔✔Source Documents - ✔✔identify and describe transactions and events entering the
accounting process
✔✔General ledger - ✔✔a record of all accounts used by a company
✔✔The Chart of accounts - ✔✔a list of all ledger accounts and has an identification
number assigned to each account
✔✔T-Account - ✔✔represents a ledger account and is a tool used to understand the
effects of one or more transactions
✔✔account balance - ✔✔the difference between the total debits and the total credits in
an account
✔✔double-entry accounting - ✔✔demands the accounting equation remain in balance
✔✔journal - ✔✔complete record of each transaction in one place
