ACCT 200 Exam 1 University Of Arizona Questions
And Answers
three types of businesses ANS sole proprietorship, partnership, corporation
sole proprietorship ANS business owned by one person
Partnership ANS business owned by two or more people associated as partners
Corporation ANS separate legal entity for which evidence of ownership is provided by shares of stock
Businesses involved in 3 types of activity ANS financing, investing, operating
What keeps tracks of the three business activities ANS Accounting information system
Two sources of outside funds ANS Borrowing money
Selling/issuing stock
Revenues ANS Amounts earned from the sale of products (sales revenue, service revenue, and
interest revenue)
Inventory ANS goods available for sale to customers
Accounts recievable ANS Right to receive money from a customer as the result of the sale
Expenses ANS cost of assets consumed or services used (cost of goods sold, selling marketing, and
administrative expense)
Liabilities ANS Arising from expenses include accounts payable, interest payable, and wages payable
, Net income ANS when revenues exceed expenses
Net loss ANS when expenses exceed revenues
Types of financial statements ANS income statement, statement of retained earnings, balance sheet,
statement of cash flows
Equation for Ending Retained Earnings ANS Beg RE + Net Income - Dividends = End RE
Net income/loss formula ANS Revenue-expense
Net income is needed to determine... ANS The ending balance in retained earnings
Balance sheet order ANS Assets, liabilities, stockholders equity
How are the financial statements connected ANS Income statement: revenues- expenses= net income
Statement of retained earnings: beg. R/E + net income-dividends= end. R/E
Balance sheet: assets= liabilities + stockholders equity
(Stockholders equity = common stock + ending R/E
If A = 6,000, SE = 2,000, L = ? ANS 4000
If L ↑ 4,000, SE ↓ 1,000, then A? ANS 3000
What does FASB stand for? ANS Financial Accounting Standards Board (US standard-setting body)
What does GAAP stand for? ANS Generally Accepted Accounting Principles (US rules for financial
reporting)
And Answers
three types of businesses ANS sole proprietorship, partnership, corporation
sole proprietorship ANS business owned by one person
Partnership ANS business owned by two or more people associated as partners
Corporation ANS separate legal entity for which evidence of ownership is provided by shares of stock
Businesses involved in 3 types of activity ANS financing, investing, operating
What keeps tracks of the three business activities ANS Accounting information system
Two sources of outside funds ANS Borrowing money
Selling/issuing stock
Revenues ANS Amounts earned from the sale of products (sales revenue, service revenue, and
interest revenue)
Inventory ANS goods available for sale to customers
Accounts recievable ANS Right to receive money from a customer as the result of the sale
Expenses ANS cost of assets consumed or services used (cost of goods sold, selling marketing, and
administrative expense)
Liabilities ANS Arising from expenses include accounts payable, interest payable, and wages payable
, Net income ANS when revenues exceed expenses
Net loss ANS when expenses exceed revenues
Types of financial statements ANS income statement, statement of retained earnings, balance sheet,
statement of cash flows
Equation for Ending Retained Earnings ANS Beg RE + Net Income - Dividends = End RE
Net income/loss formula ANS Revenue-expense
Net income is needed to determine... ANS The ending balance in retained earnings
Balance sheet order ANS Assets, liabilities, stockholders equity
How are the financial statements connected ANS Income statement: revenues- expenses= net income
Statement of retained earnings: beg. R/E + net income-dividends= end. R/E
Balance sheet: assets= liabilities + stockholders equity
(Stockholders equity = common stock + ending R/E
If A = 6,000, SE = 2,000, L = ? ANS 4000
If L ↑ 4,000, SE ↓ 1,000, then A? ANS 3000
What does FASB stand for? ANS Financial Accounting Standards Board (US standard-setting body)
What does GAAP stand for? ANS Generally Accepted Accounting Principles (US rules for financial
reporting)
