LSU ACCT 2000 EXAM 2 PRACTICE SCRIPT
2026 TESTED QUESTIONS WITH ANSWERS
◉ What are the components of a statement of cash flows. Answer: 3
sections:
1. operating
2. investing
3. financial
◉ What is the date of a statement of cash flows. Answer: A point in
time
◉ MD&A:. Answer: Management discussion and analysis
-management discussion of ability to pay debts and the results of
operation (how its going and where its gonna go)
◉ Notes to financial statements:. Answer: Clarify financial
statements and gives additional details
◉ Auditors opinions:. Answer: Auditors opinion as to the fairness of
the financial statements
"unqualified opinion" is good
,◉ What does a classified balance sheet report?. Answer: The assets,
liabilities, and equity and a specific point in time
◉ List assets. Answer: -Current assets
-Long-term investments
-Property, plant, and equipment
-Tangible assets
◉ List Liabilities. Answer: -Current liabilities
-Long-term liabilities
-Stockholders equity
◉ How are assets listed?. Answer: By order of liquidity- how quickly
they can be converted into cash
◉ Are current assets long-term or short-term?. Answer: Short-term
◉ List current assets. Answer: -Cash
-Debt investments
-Accounts receivable
-Notes receivable
,-Inventory
-Supplies
-Prepaid insurance
◉ What are accounts receivable?. Answer: Amounts due from
customers
◉ List long-term investments. Answer: -Stock investments
-Investment in real estate
◉ What are stock investments?. Answer: Stock in another company
◉ What are investments in real estates?. Answer: Real estate NOT
used in a company- held for investment
◉ Liabilities are listed in order of:. Answer: Magnitude
biggest-smallest
◉ List current liabilities. Answer: -Notes payable
-Accounts payable
-Unearned sales revenue
-Salaries and wages payable
, -Interest payable
◉ What are notes payable?. Answer: Owed to creditors
◉ What are accounts payable?. Answer: Owed to suppliers
◉ What is unearned sales revenue?. Answer: Revenue received in
advance
◉ What are salaries and wages payable?. Answer: Owed to
employees
◉ What are interests payable?. Answer: Interest owed to creditors
◉ List long-term liabilities. Answer: -Mortgage payable
-Notes payable
◉ List stockholders equity. Answer: -Common stock
-Retained earnings
◉ Where does the retained earnings come from?. Answer: The
retained earnings statement
2026 TESTED QUESTIONS WITH ANSWERS
◉ What are the components of a statement of cash flows. Answer: 3
sections:
1. operating
2. investing
3. financial
◉ What is the date of a statement of cash flows. Answer: A point in
time
◉ MD&A:. Answer: Management discussion and analysis
-management discussion of ability to pay debts and the results of
operation (how its going and where its gonna go)
◉ Notes to financial statements:. Answer: Clarify financial
statements and gives additional details
◉ Auditors opinions:. Answer: Auditors opinion as to the fairness of
the financial statements
"unqualified opinion" is good
,◉ What does a classified balance sheet report?. Answer: The assets,
liabilities, and equity and a specific point in time
◉ List assets. Answer: -Current assets
-Long-term investments
-Property, plant, and equipment
-Tangible assets
◉ List Liabilities. Answer: -Current liabilities
-Long-term liabilities
-Stockholders equity
◉ How are assets listed?. Answer: By order of liquidity- how quickly
they can be converted into cash
◉ Are current assets long-term or short-term?. Answer: Short-term
◉ List current assets. Answer: -Cash
-Debt investments
-Accounts receivable
-Notes receivable
,-Inventory
-Supplies
-Prepaid insurance
◉ What are accounts receivable?. Answer: Amounts due from
customers
◉ List long-term investments. Answer: -Stock investments
-Investment in real estate
◉ What are stock investments?. Answer: Stock in another company
◉ What are investments in real estates?. Answer: Real estate NOT
used in a company- held for investment
◉ Liabilities are listed in order of:. Answer: Magnitude
biggest-smallest
◉ List current liabilities. Answer: -Notes payable
-Accounts payable
-Unearned sales revenue
-Salaries and wages payable
, -Interest payable
◉ What are notes payable?. Answer: Owed to creditors
◉ What are accounts payable?. Answer: Owed to suppliers
◉ What is unearned sales revenue?. Answer: Revenue received in
advance
◉ What are salaries and wages payable?. Answer: Owed to
employees
◉ What are interests payable?. Answer: Interest owed to creditors
◉ List long-term liabilities. Answer: -Mortgage payable
-Notes payable
◉ List stockholders equity. Answer: -Common stock
-Retained earnings
◉ Where does the retained earnings come from?. Answer: The
retained earnings statement
