MGT 6201 ACCOUNTING WEEK 1 ACTUAL EXAM [QUESTION 1- 200]
AND ANSWERS UPDATED 2026/2027| 100% VERIFIED|DETAILED
RATIONALES –PASS GUARANTEED A+ GRADED |INSTANT DOWNLOAD
How is retained earnings calculated? - --CORRECT ANSWER----Beginning Retained Earnings + Net Income
- Dividends = Ending Retained Earnings.
What are assets? - --CORRECT ANSWER----Economic resources owned or controlled by a company that
have future economic benefits.
What are expenses? - --CORRECT ANSWER----Costs incurred in the normal course of business to
generate revenues.
What are liabilities? - --CORRECT ANSWER----Future obligations to pay cash, transfer assets, or provide
services to another party.
What are revenues? - --CORRECT ANSWER----Increases in a company's resources from the sale of goods
or services.
What are the main equity categories in the Statement of Shareholders' Equity? - --CORRECT ANSWER----
Capital Stock, Retained Earnings, Treasury Stock, Other Comprehensive Income.
What are the required financial statements? - --CORRECT ANSWER----Balance Sheet, Income Statement,
Statement of Shareholders' Equity, Statement of Cash Flows, Statement of Comprehensive Income.
What are the three sections of the Statement of Cash Flows? - --CORRECT ANSWER----Operating
Activities, Investing Activities, Financing Activities.
What are the two main qualities that make financial information useful? - --CORRECT ANSWER----
Relevance and faithful representation.
What does a balance sheet describe? - --CORRECT ANSWER----The sources and uses of funds of a firm at
a point in time.
What does COGS stand for? - --CORRECT ANSWER----Cost of Goods Sold.
, What does EPS stand for in financial reporting? - --CORRECT ANSWER----Earnings Per Share.
What does GAAP stand for? - --CORRECT ANSWER----Generally Accepted Accounting Principles.
What does liquidity refer to in the context of a balance sheet? - --CORRECT ANSWER----The ease with
which assets can be converted into cash.
What does the income statement show? - --CORRECT ANSWER----How much a company earned over a
period of time, helping evaluate past performance and predict future performance.
What is a Journal Entry? - --CORRECT ANSWER----A recording of a transaction or other entry in
accounting.
What is Accrual Accounting? - --CORRECT ANSWER----A system of accounting where revenues and
expenses are recorded as they are earned and incurred, not necessarily when cash changes hands.
What is an external audit? - --CORRECT ANSWER----An audit conducted by an independent party to
provide reasonable assurance that financial statements are free of material misstatements.
What is an Income Statement? - --CORRECT ANSWER----A financial statement that summarizes revenues
and expenses over a specific period, showing net income.
What is Double Entry Accounting? - --CORRECT ANSWER----A method of accounting that includes Debits
and Credits, ensuring that total debits equal total credits.
What is earnings management? - --CORRECT ANSWER----The manipulation of financial statements to
present a desired image of a company's financial performance.
What is Management Discussion and Analysis (MD&A)? - --CORRECT ANSWER----A section of a
company's annual report that provides an overview of the previous year's operations and the company's
future outlook.
AND ANSWERS UPDATED 2026/2027| 100% VERIFIED|DETAILED
RATIONALES –PASS GUARANTEED A+ GRADED |INSTANT DOWNLOAD
How is retained earnings calculated? - --CORRECT ANSWER----Beginning Retained Earnings + Net Income
- Dividends = Ending Retained Earnings.
What are assets? - --CORRECT ANSWER----Economic resources owned or controlled by a company that
have future economic benefits.
What are expenses? - --CORRECT ANSWER----Costs incurred in the normal course of business to
generate revenues.
What are liabilities? - --CORRECT ANSWER----Future obligations to pay cash, transfer assets, or provide
services to another party.
What are revenues? - --CORRECT ANSWER----Increases in a company's resources from the sale of goods
or services.
What are the main equity categories in the Statement of Shareholders' Equity? - --CORRECT ANSWER----
Capital Stock, Retained Earnings, Treasury Stock, Other Comprehensive Income.
What are the required financial statements? - --CORRECT ANSWER----Balance Sheet, Income Statement,
Statement of Shareholders' Equity, Statement of Cash Flows, Statement of Comprehensive Income.
What are the three sections of the Statement of Cash Flows? - --CORRECT ANSWER----Operating
Activities, Investing Activities, Financing Activities.
What are the two main qualities that make financial information useful? - --CORRECT ANSWER----
Relevance and faithful representation.
What does a balance sheet describe? - --CORRECT ANSWER----The sources and uses of funds of a firm at
a point in time.
What does COGS stand for? - --CORRECT ANSWER----Cost of Goods Sold.
, What does EPS stand for in financial reporting? - --CORRECT ANSWER----Earnings Per Share.
What does GAAP stand for? - --CORRECT ANSWER----Generally Accepted Accounting Principles.
What does liquidity refer to in the context of a balance sheet? - --CORRECT ANSWER----The ease with
which assets can be converted into cash.
What does the income statement show? - --CORRECT ANSWER----How much a company earned over a
period of time, helping evaluate past performance and predict future performance.
What is a Journal Entry? - --CORRECT ANSWER----A recording of a transaction or other entry in
accounting.
What is Accrual Accounting? - --CORRECT ANSWER----A system of accounting where revenues and
expenses are recorded as they are earned and incurred, not necessarily when cash changes hands.
What is an external audit? - --CORRECT ANSWER----An audit conducted by an independent party to
provide reasonable assurance that financial statements are free of material misstatements.
What is an Income Statement? - --CORRECT ANSWER----A financial statement that summarizes revenues
and expenses over a specific period, showing net income.
What is Double Entry Accounting? - --CORRECT ANSWER----A method of accounting that includes Debits
and Credits, ensuring that total debits equal total credits.
What is earnings management? - --CORRECT ANSWER----The manipulation of financial statements to
present a desired image of a company's financial performance.
What is Management Discussion and Analysis (MD&A)? - --CORRECT ANSWER----A section of a
company's annual report that provides an overview of the previous year's operations and the company's
future outlook.
