LSU ACCT 2000 EXAM 1 COMPREHENSIVE
EXAM 2026 QUESTIONS AND ANSWERS
GRADED A+
◉ What are the two types of financing? Answer: debt and equity
◉ What is the management discussion and analysis (MD&A)?
Answer: management's discussion of trends, ability to pay debts,
and results of operations
◉ What are the notes to financial statements for? Answer: to clarify
financial statements and give additional info and details
◉ What is an auditor's report? Answer: auditor's opinion about the
fairness of the financial statements
◉ What does the Sarbanes-Oxley Act enforce? Answer: top
management must certify the accuracy of the statements, severe
punishment for fraud, and more auditor duties
◉ Management would be considered an ____________ user. Answer:
internal
, ◉ Regulatory authorities (auditors) are considered ___________ users.
Answer: external
◉ Taxing authorities are considered ____________ users. Answer:
external
◉ Present creditors are considered ___________ users. Answer:
external
◉ The classified balance sheet reports the assets, liabilities and
equity at a ______________ ____________ in time. Answer: specific point
◉ The classified balance sheet groups together similar _________ and
similar ____________, using standard classifications. Answer: assets;
liabilities
◉ Current assets are assets that a company expects to
_________________________ or ________________ within one year or the
operating cycle, whichever is longer. Answer: convert to cash; use up
◉ Operating cycle is the average time it takes from the purchase of
_____________ to the _______________________ from customers. Answer:
inventory; collection of cash
EXAM 2026 QUESTIONS AND ANSWERS
GRADED A+
◉ What are the two types of financing? Answer: debt and equity
◉ What is the management discussion and analysis (MD&A)?
Answer: management's discussion of trends, ability to pay debts,
and results of operations
◉ What are the notes to financial statements for? Answer: to clarify
financial statements and give additional info and details
◉ What is an auditor's report? Answer: auditor's opinion about the
fairness of the financial statements
◉ What does the Sarbanes-Oxley Act enforce? Answer: top
management must certify the accuracy of the statements, severe
punishment for fraud, and more auditor duties
◉ Management would be considered an ____________ user. Answer:
internal
, ◉ Regulatory authorities (auditors) are considered ___________ users.
Answer: external
◉ Taxing authorities are considered ____________ users. Answer:
external
◉ Present creditors are considered ___________ users. Answer:
external
◉ The classified balance sheet reports the assets, liabilities and
equity at a ______________ ____________ in time. Answer: specific point
◉ The classified balance sheet groups together similar _________ and
similar ____________, using standard classifications. Answer: assets;
liabilities
◉ Current assets are assets that a company expects to
_________________________ or ________________ within one year or the
operating cycle, whichever is longer. Answer: convert to cash; use up
◉ Operating cycle is the average time it takes from the purchase of
_____________ to the _______________________ from customers. Answer:
inventory; collection of cash
