ACC 200 EXAM 1 STUDY GUIDE UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Capital
Answer:
Money
Question:
2. Internal funding
Answer:
people you know that can lend you money to start a business.
Question:
3. Outside funding
Answer:
Investors, debt financing (bank) or private investors (equity financing, they get
part of the company)
Question:
4. FASB
Answer:
Financial Accounting Standards Board. They set the accounting rules
Question:
5. Private companies
Answer:
ownership in company is privately held, often individuals or small groups. May use
a cash basis of accounting, but still many that use the accrual basis (for their
banks)
Question:
6. Public companies
Answer:
owned by the investing public. This is where the stock exchange comes in.
, Question:
7. Parts of financial report:
Answer:
1. General business disclosures
2. Management Discussion and Analysis
3. Financial statements
3a. Balance sheet
3b. Income statement
3c. Statement of cash flow
3d. Equity statement
4. notes to financial statements
Question:
10-Q
Answer:
quarterly reports
Question:
10-K
Answer:
annual reports
Question:
10. GAAP
Answer:
Generally Accepted Accounting Principles
Question:
11. Accrual basis of accounting
Answer:
tracks money as transactions happen rather than when the cash gets to an
account
Question:
12. Independent auditors
Answer:
make sure that GAAP is being followed
QUESTIONS AND CORRECT ANSWERS
Question:
1. Capital
Answer:
Money
Question:
2. Internal funding
Answer:
people you know that can lend you money to start a business.
Question:
3. Outside funding
Answer:
Investors, debt financing (bank) or private investors (equity financing, they get
part of the company)
Question:
4. FASB
Answer:
Financial Accounting Standards Board. They set the accounting rules
Question:
5. Private companies
Answer:
ownership in company is privately held, often individuals or small groups. May use
a cash basis of accounting, but still many that use the accrual basis (for their
banks)
Question:
6. Public companies
Answer:
owned by the investing public. This is where the stock exchange comes in.
, Question:
7. Parts of financial report:
Answer:
1. General business disclosures
2. Management Discussion and Analysis
3. Financial statements
3a. Balance sheet
3b. Income statement
3c. Statement of cash flow
3d. Equity statement
4. notes to financial statements
Question:
10-Q
Answer:
quarterly reports
Question:
10-K
Answer:
annual reports
Question:
10. GAAP
Answer:
Generally Accepted Accounting Principles
Question:
11. Accrual basis of accounting
Answer:
tracks money as transactions happen rather than when the cash gets to an
account
Question:
12. Independent auditors
Answer:
make sure that GAAP is being followed
