C213 EXAM SCRIPT VERIFIED QUESTIONS
AND SOLUTIONS COMPLETE REVIEW
MATERIAL
●● "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.
●● 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.
●● Balance Sheet
Answer: A listing of an organization's assets and of its liabilities at a
certain time.
,●● 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.
●● 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.
●● Capital Lease Obligations
Answer: A long-term liability in the balance sheet.
●● 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
AND SOLUTIONS COMPLETE REVIEW
MATERIAL
●● "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.
●● 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.
●● Balance Sheet
Answer: A listing of an organization's assets and of its liabilities at a
certain time.
,●● 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.
●● 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.
●● Capital Lease Obligations
Answer: A long-term liability in the balance sheet.
●● 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
