LSU ACCT 2000 EXAM 1 PRACTICE SCRIPT
2026 TESTED QUESTIONS WITH ANSWERS
◉ What are the three sections of a statement of cash flows? Answer:
- Financing
- Investing
- Operating
◉ What is the only type of statement that DOES NOT cover a period
of time, but rather, a day? Answer: Balance sheet
◉ If it is the start of a business, the beginning retained earnings is
________ Answer: Zero
◉ Resources owned by a business are known as _______ Answer:
Assets
◉ Amounts owed to creditors/suppliers are known as _________
Answer: Liabilities
◉ Owner's claims to assets are known as _____________ Answer:
Stockholder's equity
, ◉ Amounts received from issuing (selling) shares of stock are
known as _____________ Answer: Common stock
◉ Net income retained in the business is known as ___________
Answer: Retained earnings
◉ Cash payments to stockholders are known as ___________ Answer:
Dividends
◉ Amounts earned from the sale of products or services performed
are known as _______________ Answer: Revenues
◉ Cost of assets consumed or services used is __________ Answer:
Expenses
◉ When Revenues > Expenses, this results in a __________ Answer: Net
income
◉ When Expenses > Revenues, this results in a ______ Answer: Net
loss
◉ What are the 4 parts of the annual report? Answer: - Auditor's
report
- Management, Discussion, and Analysis
2026 TESTED QUESTIONS WITH ANSWERS
◉ What are the three sections of a statement of cash flows? Answer:
- Financing
- Investing
- Operating
◉ What is the only type of statement that DOES NOT cover a period
of time, but rather, a day? Answer: Balance sheet
◉ If it is the start of a business, the beginning retained earnings is
________ Answer: Zero
◉ Resources owned by a business are known as _______ Answer:
Assets
◉ Amounts owed to creditors/suppliers are known as _________
Answer: Liabilities
◉ Owner's claims to assets are known as _____________ Answer:
Stockholder's equity
, ◉ Amounts received from issuing (selling) shares of stock are
known as _____________ Answer: Common stock
◉ Net income retained in the business is known as ___________
Answer: Retained earnings
◉ Cash payments to stockholders are known as ___________ Answer:
Dividends
◉ Amounts earned from the sale of products or services performed
are known as _______________ Answer: Revenues
◉ Cost of assets consumed or services used is __________ Answer:
Expenses
◉ When Revenues > Expenses, this results in a __________ Answer: Net
income
◉ When Expenses > Revenues, this results in a ______ Answer: Net
loss
◉ What are the 4 parts of the annual report? Answer: - Auditor's
report
- Management, Discussion, and Analysis
