ACCOUNTING 200 FINAL EXAM
REVIEW 2025 QUESTIONS AND
ANSWERS
Financial accounting - ANS reporting financial results to others outside of the company such
as investors and creditors
annual reports include - ANS 4 required financial statements
notes to financial statements
auditors report to financial statements
auditors report to internal control
managements report on internal control
management discussion and analysis
four required financial statements - ANS income statement
balance sheet
statement of stockholders equity
statement of cash flows
revenues are recognized - ANS when earned
revenues are not recognized when - ANS cash is received before revenue is earned
(deferred)
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, when are expenses recognized? - ANS when incurred (when utilities are used)
sometimes estimated in order to record in that time period
expense is considered deferred when .. - ANS cash is paid before expense is incurred
(prepaid expense)
expenses are considered accrual when.. - ANS they have incurred before they are paid
(accounts payable)
matching concept - ANS recording expenses in the time period they were incurred to
produce revenues thus matching them against the revenues earned during that same period
revenue recognition principle - ANS recognizes revenues when they are earned
cost principal - ANS when a business acquires assets or services they should be recorded at
their actual cost
conservatism - ANS a business must report all items in the financial statements at amounts
that lead to the most cautious immediate results
materiality - ANS a company must perform strictly proper accounting only for items that are
significant for the businesses financial statements
balance sheet: - ANS assets=liabilities + stockholders equity
assets - ANS resources the company owns
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
REVIEW 2025 QUESTIONS AND
ANSWERS
Financial accounting - ANS reporting financial results to others outside of the company such
as investors and creditors
annual reports include - ANS 4 required financial statements
notes to financial statements
auditors report to financial statements
auditors report to internal control
managements report on internal control
management discussion and analysis
four required financial statements - ANS income statement
balance sheet
statement of stockholders equity
statement of cash flows
revenues are recognized - ANS when earned
revenues are not recognized when - ANS cash is received before revenue is earned
(deferred)
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 1
, when are expenses recognized? - ANS when incurred (when utilities are used)
sometimes estimated in order to record in that time period
expense is considered deferred when .. - ANS cash is paid before expense is incurred
(prepaid expense)
expenses are considered accrual when.. - ANS they have incurred before they are paid
(accounts payable)
matching concept - ANS recording expenses in the time period they were incurred to
produce revenues thus matching them against the revenues earned during that same period
revenue recognition principle - ANS recognizes revenues when they are earned
cost principal - ANS when a business acquires assets or services they should be recorded at
their actual cost
conservatism - ANS a business must report all items in the financial statements at amounts
that lead to the most cautious immediate results
materiality - ANS a company must perform strictly proper accounting only for items that are
significant for the businesses financial statements
balance sheet: - ANS assets=liabilities + stockholders equity
assets - ANS resources the company owns
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
