ACC 200 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
Users of financial statements. - Answers - External users- owners, other companies,
creditors, general public
Internal users- management, departments, project managers
What are the accounting rules? - Answers - GAAP
Who are the rule setters? - Answers - FASB
SEC
PCAOB
4 financial statements- - Answers - balance sheet, income statement, statement of
stockholders equity, statement of cash flows
Balance Sheet explained- - Answers - Shows that A=L+SE
(as of a certain date)
Income Statement explained- - Answers - Matches the expenses with the revenues that
occur during a period
(for a period ended)
Statement of Stockholders' equity explained- - Answers - Explains the effects on
common stock and retained earnings
(for a period ended)
Statement of Cash flows explained- - Answers - Determines how much cash is obtained
and used during the accounting period
(for a period ended)
What is the difference between stockholders and creditors? - Answers - Stockholders
are the owners and creditors are lenders to the company.
Which of the financial statements is a snapshot in time? - Answers - Balance Statement
A Company had assets at December 31st of $1,548,000 and equity of $650,000. What
are the total liabilities? - Answers - 898,000 (assets=liabilities+equity)
A Company has assets of $750,000, liabilities of $225,000 and equity of $525,000.
What percentage of assets are owed to creditors? - Answers - 30% (Liabilities divided
by assets tells you the percent of assets owed to creditors)
ANSWERS
Users of financial statements. - Answers - External users- owners, other companies,
creditors, general public
Internal users- management, departments, project managers
What are the accounting rules? - Answers - GAAP
Who are the rule setters? - Answers - FASB
SEC
PCAOB
4 financial statements- - Answers - balance sheet, income statement, statement of
stockholders equity, statement of cash flows
Balance Sheet explained- - Answers - Shows that A=L+SE
(as of a certain date)
Income Statement explained- - Answers - Matches the expenses with the revenues that
occur during a period
(for a period ended)
Statement of Stockholders' equity explained- - Answers - Explains the effects on
common stock and retained earnings
(for a period ended)
Statement of Cash flows explained- - Answers - Determines how much cash is obtained
and used during the accounting period
(for a period ended)
What is the difference between stockholders and creditors? - Answers - Stockholders
are the owners and creditors are lenders to the company.
Which of the financial statements is a snapshot in time? - Answers - Balance Statement
A Company had assets at December 31st of $1,548,000 and equity of $650,000. What
are the total liabilities? - Answers - 898,000 (assets=liabilities+equity)
A Company has assets of $750,000, liabilities of $225,000 and equity of $525,000.
What percentage of assets are owed to creditors? - Answers - 30% (Liabilities divided
by assets tells you the percent of assets owed to creditors)
