KOSSA Review Questions and Answers 2024

KOSSA Review Questions and Answers 2024 accounting -Answer-information system that identifies, records, and communicates the economic events of an organization annual report -Answer-report prepared by corporate management that presents financial information and an independent auditor's report Assets -Answer-Resources owned by a business Auditor's report -Answer-A report prepared by an independent outside auditor stating the auditor's opinion as to the fairness of the presentation of the financial position and results of operations and their conformance with generally accepted accounting standards. Balance sheet -Answer-A financial statement that reports the assets and claims to those assets at a specific point in time. Basic accounting equation -Answer-Assets = Liabilities + Stockholders' Equity. Certified Public Accountant (CPA) -Answer-An individual who has met certain criteria and is thus allowed to perform audits of corporations. Common stock -Answer-total amount paid in by stockholders for the shares they purchase. Comparative statements -Answer-A presentation of the financial statements of a company for more than one year. Corporation -Answer-A business organized as a separate legal entity having ownership divided into transferable shares of stock. Dividends -Answer-Payments of cash from a corporation to its stockholders. Expenses -Answer-The cost of assets consumed or services used in the process of generating revenues. Income statement -Answer-A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time. Liabilities -Answer-The debts and obligations of a business. Liabilities represent the amounts owed to creditors. Management discussion and analysis (MD&A) -Answer-A section of the annual report that presents management's views on the company's ability to pay near-term obligations, its ability to fund operations and expansion, and its results of operations. Net income -Answer-The amount by which revenues exceed expenses. Net Income = -Answer-Revenues . Expenses Net loss -Answer-The amount by which expenses exceed revenues. Net Loss = -Answer-Expenses > Revenue Notes to the financial statements -Answer-Notes that clarify information presented in the financial statements, as well as expand upon it where additional detail is needed. Partnership -Answer-A business owned by two or more persons associated as partners. Retained earnings -Answer-The amount of net income retained in the corporation. Retained earnings statement -Answer-A financial statement that summarizes the amounts and causes of changes in retained earnings for a specific period of time. Revenue -Answer-The increase in assets that result from the sale of a product or service in the normal course of business. Sarbanes-Oxley Act (SOX) -Answer-Regulations passed by Congress in 2002 to try to reduce unethical corporate behavior. Sole proprietorship -Answer-A business owned by one person. Statement of cash flows -Answer-A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time. Stockholders' equity -Answer-The owners' claim on total assets