Accounting Crash Course Questions
And Answers
Financial bStatements bto bEvaluate ba bCompany b(4) b- bcorrect banswers✔✔Balance
bSheet, bCash bFlow bStatement, bIncome bStatement, bStatement bof bShareholder's
bEquity b(Rare)
4 bStatements bPublishing b- bcorrect banswers✔✔Published bin bperiodic band bannual
bfilings bfor bcompanies, boften baccompanied bwith bfinancial bfootnotes band
bmanagement bdiscussion b& banalysis b(MD&A)
Fundamental bAccounting bEquation b- bcorrect banswers✔✔Assets b= bLiabilities b+
bShareholders' bEquity
Assets b- bcorrect banswers✔✔the bresources ba bcompany buses bto boperate bits
bbusiness band bincludes bcash, baccounts breceivable, bproperty, bplant b& bequipment
b(PP&E)
Liabilities b- bcorrect banswers✔✔the bcompany's bcontractual bobligations band binclude
baccounts bpayable, bdebt, baccrued bexpenses
Shareholder's bEquity b- bcorrect banswers✔✔the bvalue bof bthe bbusiness bavailable bto
bthe bowners b(shareholders) bafter bdebts b(liabilities) bhave bbeen bpaid boff
Liability/Equity bPriority b- bcorrect banswers✔✔Liabilities b(like bdebt) bare bcontractual
bobligations bthat bhave bpriority bover bequity.
Equityholders, bon bthe bother bhand, bare bnot bpromised bcontractual bpayments.
Equity bholders bare bmore brisk bthan bdebt bholders.
Income bStatement b- bcorrect banswers✔✔Profitability bof ba bcompany bover ba bperiod
bof btime:
Net bIncome b= bRevenue b- bExpenses
Revenue b- bcorrect banswers✔✔Represents bthe bsale bof bgoods band bservices. bIt bis
brecorded bwhen bearned
And Answers
Financial bStatements bto bEvaluate ba bCompany b(4) b- bcorrect banswers✔✔Balance
bSheet, bCash bFlow bStatement, bIncome bStatement, bStatement bof bShareholder's
bEquity b(Rare)
4 bStatements bPublishing b- bcorrect banswers✔✔Published bin bperiodic band bannual
bfilings bfor bcompanies, boften baccompanied bwith bfinancial bfootnotes band
bmanagement bdiscussion b& banalysis b(MD&A)
Fundamental bAccounting bEquation b- bcorrect banswers✔✔Assets b= bLiabilities b+
bShareholders' bEquity
Assets b- bcorrect banswers✔✔the bresources ba bcompany buses bto boperate bits
bbusiness band bincludes bcash, baccounts breceivable, bproperty, bplant b& bequipment
b(PP&E)
Liabilities b- bcorrect banswers✔✔the bcompany's bcontractual bobligations band binclude
baccounts bpayable, bdebt, baccrued bexpenses
Shareholder's bEquity b- bcorrect banswers✔✔the bvalue bof bthe bbusiness bavailable bto
bthe bowners b(shareholders) bafter bdebts b(liabilities) bhave bbeen bpaid boff
Liability/Equity bPriority b- bcorrect banswers✔✔Liabilities b(like bdebt) bare bcontractual
bobligations bthat bhave bpriority bover bequity.
Equityholders, bon bthe bother bhand, bare bnot bpromised bcontractual bpayments.
Equity bholders bare bmore brisk bthan bdebt bholders.
Income bStatement b- bcorrect banswers✔✔Profitability bof ba bcompany bover ba bperiod
bof btime:
Net bIncome b= bRevenue b- bExpenses
Revenue b- bcorrect banswers✔✔Represents bthe bsale bof bgoods band bservices. bIt bis
brecorded bwhen bearned
