TCU FUNDAMENTALS OF ACCOUNTING
FINAL (ANDREWS) EXAM QUESTIONS
AND VERIFIED DETAILED ANSWERS
GRADED A+
QUESTIONS AND ANSWERS
Financial Accounting. ANSWER - Accounting area focused on providing financial information to
external users such as investors, creditors, and regulators.
Governing Bodies of Accounting. ANSWER - Securities and Exchange Commission (SEC)
Financial Accounting Standards Board (FASB)
Public Company Accounting Oversight Board (PCAOB)
Securities and Exchange Commission (SEC). ANSWER - U.S. government agency in charge of
determining the financial statement that public companies must provide to stockholders and the
measurement rules that they must use
Financial Accounting Standards Board (FASB). ANSWER - the private sector body in charge of
writing GAAP
Public Company Accounting Oversight Board (PCAOB). ANSWER - the private sector body that
creates auditing standards (ethics and procedures)
Generally Accepted Accounting Principles (GAAP). ANSWER - the U.S. measurement rules used
to develop the information in financial statements
International Financial Reporting Standards (IFRS). ANSWER - international rules used to
develop the information in financial statements (not used in the U.S.)
Accounting staff. ANSWER - actually prepare the financial information (professional responsibility)
Management (CEO and CFO). ANSWER - have legal responsibility for the information in the
report
, Auditors. ANSWER - review the financial information to ensure that they are true and conform
with GAAP (audit)
The Four Financial Statements. ANSWER - Balance Sheet
Income Statement
Statement of Stockholder's Equity
Statement of Cash Flows
Balance Sheet. ANSWER - Reports financial position (the amount of assets, liabilities, and
stockholders' equity at a point in time)
Assets = Liabilities + Stockholders' Equity
Income Statement. ANSWER - Reports the revenues less the expenses of the period
Revenues - Expenses = Net Income
Revenues
-Cost of Goods Sold
= Gross Profit
-Operating Costs and Expenses
= Operating Income
+/- Other Gains and Losses
= Pretax Net Income
-Income Tax Expense
= Net Income
Statement of Stockholder's Equity. ANSWER - Reports the way that net income and the
distribution of dividends affected the financial position of the company during the given period
Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings
FINAL (ANDREWS) EXAM QUESTIONS
AND VERIFIED DETAILED ANSWERS
GRADED A+
QUESTIONS AND ANSWERS
Financial Accounting. ANSWER - Accounting area focused on providing financial information to
external users such as investors, creditors, and regulators.
Governing Bodies of Accounting. ANSWER - Securities and Exchange Commission (SEC)
Financial Accounting Standards Board (FASB)
Public Company Accounting Oversight Board (PCAOB)
Securities and Exchange Commission (SEC). ANSWER - U.S. government agency in charge of
determining the financial statement that public companies must provide to stockholders and the
measurement rules that they must use
Financial Accounting Standards Board (FASB). ANSWER - the private sector body in charge of
writing GAAP
Public Company Accounting Oversight Board (PCAOB). ANSWER - the private sector body that
creates auditing standards (ethics and procedures)
Generally Accepted Accounting Principles (GAAP). ANSWER - the U.S. measurement rules used
to develop the information in financial statements
International Financial Reporting Standards (IFRS). ANSWER - international rules used to
develop the information in financial statements (not used in the U.S.)
Accounting staff. ANSWER - actually prepare the financial information (professional responsibility)
Management (CEO and CFO). ANSWER - have legal responsibility for the information in the
report
, Auditors. ANSWER - review the financial information to ensure that they are true and conform
with GAAP (audit)
The Four Financial Statements. ANSWER - Balance Sheet
Income Statement
Statement of Stockholder's Equity
Statement of Cash Flows
Balance Sheet. ANSWER - Reports financial position (the amount of assets, liabilities, and
stockholders' equity at a point in time)
Assets = Liabilities + Stockholders' Equity
Income Statement. ANSWER - Reports the revenues less the expenses of the period
Revenues - Expenses = Net Income
Revenues
-Cost of Goods Sold
= Gross Profit
-Operating Costs and Expenses
= Operating Income
+/- Other Gains and Losses
= Pretax Net Income
-Income Tax Expense
= Net Income
Statement of Stockholder's Equity. ANSWER - Reports the way that net income and the
distribution of dividends affected the financial position of the company during the given period
Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings
