ACCT 2000 NEW FINAL EXAM ALL QUESTIONS AND VERIFIED
ANSWERS GET IT 100% ACCURATE!!
What are they 3 forms of business organization - ANSWER Sole Proprietorship,
Partnership, Corporation
Advantages include simple to establish, Control, Tax Advantages - ANSWER Sole
Proprietorship
Advantages include simple to establish, Broader skills and resources, and Tax
advantages - ANSWER Partnership
Advantages include easy to transfer ownership, Easy to raise capital, No personal
liability - ANSWER Corporation
Both of these forms of business activities disadvantages are Personal Liability. -
ANSWER Sole Proprietorship, Partnership
This Form of business's disadvantages are Taxes - ANSWER Corporation
Managers, HR, Corporate Officers - ANSWER Internal Users (Managerial)
Shareholders, Investors, IRS - ANSWER External Users (Financial)
What are the 3 types of business activities? - ANSWER Investing, Financing, Operating
Reports revenues and expenses for a period of time - ANSWER Income Statement
,R/E is the net income retained in the cooperation changes in R/E - ANSWER Retained
Earnings
Reports assets & claims to the assets at a specific point in time - ANSWER Balance
Sheet
Shows sources and uses of cash - ANSWER Statement of Cash Flows
Financial Statement that includes Revenues- Expenses= Net income - ANSWER Income
Statement
Financial Statement that includes Beg. R/E+Net income-dividends= End R/E - ANSWER
Retained Earnings Statement
Financial Statement that includes Assets= Liabilities+ Stockholders Equity - ANSWER
Balance Sheet
Financial Statement that includes Sections : Operating, Investing, Financing - ANSWER
Statement of Cash Flows
What are the components of the Annual Report - ANSWER Financial Statements,
MD&A, Notes, Auditors Opinion
Managements disscussion of ability to pay and results of operations - ANSWER
Management Discussion and Analysis
Reports the assets, liabilities, and equity at a specific point in time - ANSWER
Classified Balance Sheet
Cash, Inventory, prepaid, supplies are all - ANSWER Current Assets
,Components of a Classified Balance Sheet - ANSWER Current Assets, Long-Term
Investments, PP&E, Intangible Assets, Current Liabilities, Long-Term Liabilities,
Stockholders Equity
A set of rules and practices, having substantial authoritative support, that the
accounting profession recognizes as a general guide for financial reporting purposes.
(The Rules) - ANSWER Generally Accepted Accounting Principles (GAAP)
Primary accounting standards body in the U.S. (Makes the Rules) - ANSWER Financial
Accounting Standards Board (FASB)
Information that makes a difference in a decision ; predictive value/ confirmatory -
ANSWER Relevant
Disclose what really happened; complete, neutral, and free from error - ANSWER
Faithful Representation
Information that can be proved that is free from error - ANSWER Verifiability
Information that is available to decision makers before it loses capacity to influence
decision makers - ANSWER Timeliness
Results when different companies use the same accounting principles - ANSWER
Comparability
Results when a company uses the same principles and methods from year to year -
ANSWER Consistency
Information has this quality if it is presented in a clear and concise fashion - ANSWER
Understandability
, This Assumption requires that only things that can be expressed in money are included
in the accounting records. - ANSWER Monetary Unit
This Assumption states that every economic entity can be separate identified and
accounted for. (Owner is Separate from Business) - ANSWER Economic Entity
This Assumption states that the life of a business can be divided into time periods -
ANSWER Periodicity
This Assumption states that the business will continue to operate for the foreseeable
future - ANSWER Going Concern
This means transactions that change a companys financial statements are recorded in
the periods in which the events occur - ANSWER Accural Accounting
This principle indicates that a company disclose all circumstances and events that
would make a difference to financial statement users - ANSWER Full Disclosure
This Dictates costs which companies record assets at their cost - ANSWER Cost
Principle
FASB requires most assets follow the ______ principle - ANSWER Cost
Accounting Equation - ANSWER Assets= Liabilities+ Stockholders Equity
Assets normal balance - ANSWER Debit
Liabilities normal balance - ANSWER Credit
Expenses normal balance - ANSWER Debit
ANSWERS GET IT 100% ACCURATE!!
What are they 3 forms of business organization - ANSWER Sole Proprietorship,
Partnership, Corporation
Advantages include simple to establish, Control, Tax Advantages - ANSWER Sole
Proprietorship
Advantages include simple to establish, Broader skills and resources, and Tax
advantages - ANSWER Partnership
Advantages include easy to transfer ownership, Easy to raise capital, No personal
liability - ANSWER Corporation
Both of these forms of business activities disadvantages are Personal Liability. -
ANSWER Sole Proprietorship, Partnership
This Form of business's disadvantages are Taxes - ANSWER Corporation
Managers, HR, Corporate Officers - ANSWER Internal Users (Managerial)
Shareholders, Investors, IRS - ANSWER External Users (Financial)
What are the 3 types of business activities? - ANSWER Investing, Financing, Operating
Reports revenues and expenses for a period of time - ANSWER Income Statement
,R/E is the net income retained in the cooperation changes in R/E - ANSWER Retained
Earnings
Reports assets & claims to the assets at a specific point in time - ANSWER Balance
Sheet
Shows sources and uses of cash - ANSWER Statement of Cash Flows
Financial Statement that includes Revenues- Expenses= Net income - ANSWER Income
Statement
Financial Statement that includes Beg. R/E+Net income-dividends= End R/E - ANSWER
Retained Earnings Statement
Financial Statement that includes Assets= Liabilities+ Stockholders Equity - ANSWER
Balance Sheet
Financial Statement that includes Sections : Operating, Investing, Financing - ANSWER
Statement of Cash Flows
What are the components of the Annual Report - ANSWER Financial Statements,
MD&A, Notes, Auditors Opinion
Managements disscussion of ability to pay and results of operations - ANSWER
Management Discussion and Analysis
Reports the assets, liabilities, and equity at a specific point in time - ANSWER
Classified Balance Sheet
Cash, Inventory, prepaid, supplies are all - ANSWER Current Assets
,Components of a Classified Balance Sheet - ANSWER Current Assets, Long-Term
Investments, PP&E, Intangible Assets, Current Liabilities, Long-Term Liabilities,
Stockholders Equity
A set of rules and practices, having substantial authoritative support, that the
accounting profession recognizes as a general guide for financial reporting purposes.
(The Rules) - ANSWER Generally Accepted Accounting Principles (GAAP)
Primary accounting standards body in the U.S. (Makes the Rules) - ANSWER Financial
Accounting Standards Board (FASB)
Information that makes a difference in a decision ; predictive value/ confirmatory -
ANSWER Relevant
Disclose what really happened; complete, neutral, and free from error - ANSWER
Faithful Representation
Information that can be proved that is free from error - ANSWER Verifiability
Information that is available to decision makers before it loses capacity to influence
decision makers - ANSWER Timeliness
Results when different companies use the same accounting principles - ANSWER
Comparability
Results when a company uses the same principles and methods from year to year -
ANSWER Consistency
Information has this quality if it is presented in a clear and concise fashion - ANSWER
Understandability
, This Assumption requires that only things that can be expressed in money are included
in the accounting records. - ANSWER Monetary Unit
This Assumption states that every economic entity can be separate identified and
accounted for. (Owner is Separate from Business) - ANSWER Economic Entity
This Assumption states that the life of a business can be divided into time periods -
ANSWER Periodicity
This Assumption states that the business will continue to operate for the foreseeable
future - ANSWER Going Concern
This means transactions that change a companys financial statements are recorded in
the periods in which the events occur - ANSWER Accural Accounting
This principle indicates that a company disclose all circumstances and events that
would make a difference to financial statement users - ANSWER Full Disclosure
This Dictates costs which companies record assets at their cost - ANSWER Cost
Principle
FASB requires most assets follow the ______ principle - ANSWER Cost
Accounting Equation - ANSWER Assets= Liabilities+ Stockholders Equity
Assets normal balance - ANSWER Debit
Liabilities normal balance - ANSWER Credit
Expenses normal balance - ANSWER Debit
