ACCT 201A Exam Questions and Answers
(Most Recent Version, Complete Study
Material)
Which definition best describes financial accounting? -
Correct Answers ✅Measuring a company's business
activities and communicating those measurements to
external parties.
The primary function(s) of financial accounting is(are) to: -
Correct Answers ✅Measure business activities of a
company and communicate information about business
activities to outside users.
Correct
Financial accounting provides information primarily to: -
Correct Answers ✅Investors and creditors.
Which of the following represents a resource of the company?
- Correct Answers ✅Asset
Which of the following represents an obligation of the
company? - Correct Answers ✅Liabilities
Which of the following describes the cost of selling to
customers? - Correct Answers ✅Expenses
, ACCT 201A Exam Questions and Answers
(Most Recent Version, Complete Study
Material)
Which of the following equations correctly represents the
fundamental accounting equation? - Correct Answers
✅Assets = Liabilities + Stockholders' Equity.
Expenses represent: - Correct Answers ✅Costs of providing
products or services to customers.
Amounts owed to creditors are reported as: - Correct
Answers ✅Liabilities
In which financial statement does a company report its
revenues? - Correct Answers ✅Income Statement
The financial statement that shows the financial position of a
company at a specific point in time is called the: - Correct
Answers ✅Balance Sheet
Which financial statement shows a company's revenues and
expenses? - Correct Answers ✅Income Statement
The balance in retained earnings represents: - Correct
Answers ✅The amount of income earned over the
company's life minus the dividends paid to shareholders over
the company's life.
(Most Recent Version, Complete Study
Material)
Which definition best describes financial accounting? -
Correct Answers ✅Measuring a company's business
activities and communicating those measurements to
external parties.
The primary function(s) of financial accounting is(are) to: -
Correct Answers ✅Measure business activities of a
company and communicate information about business
activities to outside users.
Correct
Financial accounting provides information primarily to: -
Correct Answers ✅Investors and creditors.
Which of the following represents a resource of the company?
- Correct Answers ✅Asset
Which of the following represents an obligation of the
company? - Correct Answers ✅Liabilities
Which of the following describes the cost of selling to
customers? - Correct Answers ✅Expenses
, ACCT 201A Exam Questions and Answers
(Most Recent Version, Complete Study
Material)
Which of the following equations correctly represents the
fundamental accounting equation? - Correct Answers
✅Assets = Liabilities + Stockholders' Equity.
Expenses represent: - Correct Answers ✅Costs of providing
products or services to customers.
Amounts owed to creditors are reported as: - Correct
Answers ✅Liabilities
In which financial statement does a company report its
revenues? - Correct Answers ✅Income Statement
The financial statement that shows the financial position of a
company at a specific point in time is called the: - Correct
Answers ✅Balance Sheet
Which financial statement shows a company's revenues and
expenses? - Correct Answers ✅Income Statement
The balance in retained earnings represents: - Correct
Answers ✅The amount of income earned over the
company's life minus the dividends paid to shareholders over
the company's life.
