Seitz A-100 Final Exam Questions with Verified
Correct Answers
Financial accounting - CORRECT ANSWER -the records and related reports that are
available to people outside the company
Financing Activity - CORRECT ANSWER -raise funds for the company to
expand/operate
Investing activity - CORRECT ANSWER -investing in assets that it will use in its
business operations
Operating activities - CORRECT ANSWER -not funding or investing
Equity investors - CORRECT ANSWER -purchasers of stock, can either get dividends
or sell
Creditors - CORRECT ANSWER -loan company money. Company raises funds thru
debt. Legal right to receive money back - principal (make a loan contract w/
collateral, terms, and maturity date
Investing activities - CORRECT ANSWER -land, buildings, equipment to help
company operate - fixed assets. Assets are supposed to last a long time and used
in operations and not sold.
, Operating activities - CORRECT ANSWER -salaries + wages, rent, utilities,
insurance, purchasers of goods to be resold.
1. Balance Sheet
2. Income statement
3. Statement of stockholder's equity
4. Statement of cash flows - CORRECT ANSWER -4 standard financial statements
1. Debitte
2.E&Y
3.KPMG
4. Pwc - CORRECT ANSWER -Big 4 auditing companies
Corporate governance
- important to have a good reputation, legal liabilities help with this, as well as
ethics - CORRECT ANSWER -the mechanisms in place within a company which
inspire managers to report the truth in their financial statements
GAAP - CORRECT ANSWER -The standards and rules that accountants follow while
recording and reporting financial activities.
IFRS (International Financial Reporting Standards) - CORRECT ANSWER -A
standardized set of rules and practices in business accounting used in many
countries as an alternative to US GAAP. Principal based - gives less guidance
Correct Answers
Financial accounting - CORRECT ANSWER -the records and related reports that are
available to people outside the company
Financing Activity - CORRECT ANSWER -raise funds for the company to
expand/operate
Investing activity - CORRECT ANSWER -investing in assets that it will use in its
business operations
Operating activities - CORRECT ANSWER -not funding or investing
Equity investors - CORRECT ANSWER -purchasers of stock, can either get dividends
or sell
Creditors - CORRECT ANSWER -loan company money. Company raises funds thru
debt. Legal right to receive money back - principal (make a loan contract w/
collateral, terms, and maturity date
Investing activities - CORRECT ANSWER -land, buildings, equipment to help
company operate - fixed assets. Assets are supposed to last a long time and used
in operations and not sold.
, Operating activities - CORRECT ANSWER -salaries + wages, rent, utilities,
insurance, purchasers of goods to be resold.
1. Balance Sheet
2. Income statement
3. Statement of stockholder's equity
4. Statement of cash flows - CORRECT ANSWER -4 standard financial statements
1. Debitte
2.E&Y
3.KPMG
4. Pwc - CORRECT ANSWER -Big 4 auditing companies
Corporate governance
- important to have a good reputation, legal liabilities help with this, as well as
ethics - CORRECT ANSWER -the mechanisms in place within a company which
inspire managers to report the truth in their financial statements
GAAP - CORRECT ANSWER -The standards and rules that accountants follow while
recording and reporting financial activities.
IFRS (International Financial Reporting Standards) - CORRECT ANSWER -A
standardized set of rules and practices in business accounting used in many
countries as an alternative to US GAAP. Principal based - gives less guidance
