Acc 290 exam questions with correct
answers
Accounting - VERIFIED ANSWER-The information system that identifies, records, and communicates
the economic events of an organization to interested users
Annual Report - VERIFIED ANSWER-A report prepared by corporate management that presents
financial information including financial statements, management discussion and analysis section,
notes and an independent auditors report
Assests - VERIFIED ANSWER-Resources owned by a business
Auditors report - VERIFIED ANSWER-A report prepared by an independent outside auditor stating the
auditors opinion as to the fairness of the presentation of the financial position and results of
operations and their conformance with generally accepted accounting principles
Balance Sheet - VERIFIED ANSWER-A financial statement that reports the assets and claims to those
assets at a specific point in time
Basic accounting equation - VERIFIED ANSWER-Assets = liabilities + stockholders equity
Certified public accountant (CPA) - VERIFIED ANSWER-An individual who has met certain criteria and is
thus allowed to perform audits of corporations
Common stock - VERIFIED ANSWER-Terms used to describe the total amount paid in by stockholders
for the shares they purchase
Corporation - VERIFIED ANSWER-A business organized as a separate legal entity owned by
stockholders
Dividends - VERIFIED ANSWER-payments of cash from a corporation to it's stockholders
, Expenses - VERIFIED ANSWER-The cost of assets consumed or services used in the process of
generating revenues
Income statement - VERIFIED ANSWER-A financial statement that reports a company's revenue and
expenses and resulting net income or net loss for a specific period of time
Liabilities - VERIFIED ANSWER-Amounts owed to creditors in the form of debts and other obligations
Management discussion and analysis (MD&A) - VERIFIED ANSWER-A section of the annual report that
presents managements view on the company's ability to pay near term obligations, it's ability to fund
operations and expansions, and it's results of operations
Net income - VERIFIED ANSWER-The amount by which revenues exceed expense
Net loss - VERIFIED ANSWER-The amount by which expenses exceed revenues
Notes to the financial statements - VERIFIED ANSWER-Notes clarify information presented in the
financial statements and provide additional detail
Partnership - VERIFIED ANSWER-A business owned by two or more persons associated as a partners
Retained earnings - VERIFIED ANSWER-The amount of net income retained in the corporation
Retained earnings statement - VERIFIED ANSWER-A financial statement that summarizes the amounts
and causes of changes in retained earnings for s specific time period
Revenue - VERIFIED ANSWER-The increase in assets or decrease in liabilities resulting from the sale of
goods or the performance of service in the normal course of business
Sarbanes-Oxley Act (SOX) - VERIFIED ANSWER-Regulations passed by congress to reduce unethical
corporate behavior
answers
Accounting - VERIFIED ANSWER-The information system that identifies, records, and communicates
the economic events of an organization to interested users
Annual Report - VERIFIED ANSWER-A report prepared by corporate management that presents
financial information including financial statements, management discussion and analysis section,
notes and an independent auditors report
Assests - VERIFIED ANSWER-Resources owned by a business
Auditors report - VERIFIED ANSWER-A report prepared by an independent outside auditor stating the
auditors opinion as to the fairness of the presentation of the financial position and results of
operations and their conformance with generally accepted accounting principles
Balance Sheet - VERIFIED ANSWER-A financial statement that reports the assets and claims to those
assets at a specific point in time
Basic accounting equation - VERIFIED ANSWER-Assets = liabilities + stockholders equity
Certified public accountant (CPA) - VERIFIED ANSWER-An individual who has met certain criteria and is
thus allowed to perform audits of corporations
Common stock - VERIFIED ANSWER-Terms used to describe the total amount paid in by stockholders
for the shares they purchase
Corporation - VERIFIED ANSWER-A business organized as a separate legal entity owned by
stockholders
Dividends - VERIFIED ANSWER-payments of cash from a corporation to it's stockholders
, Expenses - VERIFIED ANSWER-The cost of assets consumed or services used in the process of
generating revenues
Income statement - VERIFIED ANSWER-A financial statement that reports a company's revenue and
expenses and resulting net income or net loss for a specific period of time
Liabilities - VERIFIED ANSWER-Amounts owed to creditors in the form of debts and other obligations
Management discussion and analysis (MD&A) - VERIFIED ANSWER-A section of the annual report that
presents managements view on the company's ability to pay near term obligations, it's ability to fund
operations and expansions, and it's results of operations
Net income - VERIFIED ANSWER-The amount by which revenues exceed expense
Net loss - VERIFIED ANSWER-The amount by which expenses exceed revenues
Notes to the financial statements - VERIFIED ANSWER-Notes clarify information presented in the
financial statements and provide additional detail
Partnership - VERIFIED ANSWER-A business owned by two or more persons associated as a partners
Retained earnings - VERIFIED ANSWER-The amount of net income retained in the corporation
Retained earnings statement - VERIFIED ANSWER-A financial statement that summarizes the amounts
and causes of changes in retained earnings for s specific time period
Revenue - VERIFIED ANSWER-The increase in assets or decrease in liabilities resulting from the sale of
goods or the performance of service in the normal course of business
Sarbanes-Oxley Act (SOX) - VERIFIED ANSWER-Regulations passed by congress to reduce unethical
corporate behavior
