CBAD 201 FINAL EXAM QUESTIONS
AND ANSWERS GRADED A+ 2025/2026
Accounting - ANS An information system that measures business activities, processes data
into financial statements and reports, and communicated results to decision makers. "Language
of business"
Financial Statements - ANS Business documents companies use to report the results of their
activities to people and groups
Users of Financial Statements - ANS Managers, investors, creditors, and regulatory agencies
The Accounting Cycle - ANS The process by which financial statements are made
Book Keeping - ANS A mechanical part of accounting, just as arithmetic is a part of
mathematics; accounting as a field is much more than this mechanical part
Proprietorship - ANS One Owner, personal liability of owner for debts
Partnership - ANS Two+ owners, personal liability of owners for debts.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, LLC (Limited Liability Company) - ANS "Members", personal liability of owners for debts:
none
Corporation - ANS "Stockholders", personal liability of owners for debts: none
GAAP (Generally Accepted Accounting Principles) - ANS Formulated by FASB-USA, considered
to be the strongest set of accounting standards in the world
IFRS (International Financial Reporting Standards) - ANS Formulated by IASB-World, less exact
than GAAP, used by most countries in the world, was created to compare financial data across
countries
Relevant & Faithful Representation - ANS Accounting information must be both ____ and a
____
Relevant - ANS Useful to users of financial statements
Faithful Representation - ANS Financial statements have to be complete, neutral, & accurate
Comparability - ANS Accounting information must be prepared in a way that allows it to be
compared with information from other companies in the same period
Verifyability - ANS It must be possible to check the information for accuracy, completeness, &
reliability
Timeliness - ANS The information must be made available to users early enough to help them
make decisions
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
AND ANSWERS GRADED A+ 2025/2026
Accounting - ANS An information system that measures business activities, processes data
into financial statements and reports, and communicated results to decision makers. "Language
of business"
Financial Statements - ANS Business documents companies use to report the results of their
activities to people and groups
Users of Financial Statements - ANS Managers, investors, creditors, and regulatory agencies
The Accounting Cycle - ANS The process by which financial statements are made
Book Keeping - ANS A mechanical part of accounting, just as arithmetic is a part of
mathematics; accounting as a field is much more than this mechanical part
Proprietorship - ANS One Owner, personal liability of owner for debts
Partnership - ANS Two+ owners, personal liability of owners for debts.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, LLC (Limited Liability Company) - ANS "Members", personal liability of owners for debts:
none
Corporation - ANS "Stockholders", personal liability of owners for debts: none
GAAP (Generally Accepted Accounting Principles) - ANS Formulated by FASB-USA, considered
to be the strongest set of accounting standards in the world
IFRS (International Financial Reporting Standards) - ANS Formulated by IASB-World, less exact
than GAAP, used by most countries in the world, was created to compare financial data across
countries
Relevant & Faithful Representation - ANS Accounting information must be both ____ and a
____
Relevant - ANS Useful to users of financial statements
Faithful Representation - ANS Financial statements have to be complete, neutral, & accurate
Comparability - ANS Accounting information must be prepared in a way that allows it to be
compared with information from other companies in the same period
Verifyability - ANS It must be possible to check the information for accuracy, completeness, &
reliability
Timeliness - ANS The information must be made available to users early enough to help them
make decisions
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
