MAA 103 ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS

MAA 103 ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS
The Accounting Equation - CORRECT ANSWERS Assets = Liabilities + Equity



Accounting - CORRECT ANSWERS Accounting keeps track of the financial records of a
business.



Cash Flow - CORRECT ANSWERS The money that is flowing in and out of your business.



Income Statement - CORRECT ANSWERS A Financial Statement documents the difference
in revenue and expenses resulting in income.



Accrual Accounting - CORRECT ANSWERS Records financial transactions when they occur
rather than when cash changes hands.



Balance sheet - CORRECT ANSWERS A financial report that summarizes a company's
assets (what it owns), liabilities (what it owes) and owner or shareholder equity at a given time.



Cost of goods sold - CORRECT ANSWERS The direct expenses related to producing the
goods sold by a business.



Variable cost - CORRECT ANSWERS a cost that varies with the level of output.



Liability - CORRECT ANSWERS A company's legal financial obligations that arise during the
course of business operations.