ACCOUNTING 200 EXAM 1 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. account payable
Answer:
a liability backed by the general reputation and credit standing at the debtor.
Question:
2. accounting
Answer:
the information system that measures business activities, processes that
information into reports and financial statements, and communicates the results to
decision makers.
Question:
3. accounting equation
Answer:
assets=liabilities+owners equity
Question:
4. asset
Answer:
an economic resource that is expected to be of benefit in the future.
Question:
5. balance sheet
Answer:
list of an entity's assets, liabilities, and owner's equity as of a specific date. also
called the statement of financial position.
Question:
6. board of directors
Answer:
group elected by the stockholders to set policy for a corporation and to appoint
its officers.
, Question:
7. capital
Answer:
another name for the owner's equity of a business
Question:
8. cash
Answer:
money and any medium of exchange that a bank accepts at face value.
Question:
9. common stock
Answer:
the most basic form of capital stock.
Question:
10. continuity (going concern) assumption
Answer:
holds that the entity will remain in operation for the foreseeable future.
Question:
11. corporation
Answer:
a business owned by stockholders. It is a legal entity, an "artificial person" in the
eyes of the law.
Question:
12. current asset
Answer:
an asset that is expected to be converted to cash, sold, or consumed during the
next 12 months or within the business's normal operating cycle if longer than a
year.
Question:
13. current liability
Answer:
a debt due to be paid within one year or within the entity's operating cycle if the
cycle is longer than a year.
QUESTIONS AND CORRECT ANSWERS
Question:
1. account payable
Answer:
a liability backed by the general reputation and credit standing at the debtor.
Question:
2. accounting
Answer:
the information system that measures business activities, processes that
information into reports and financial statements, and communicates the results to
decision makers.
Question:
3. accounting equation
Answer:
assets=liabilities+owners equity
Question:
4. asset
Answer:
an economic resource that is expected to be of benefit in the future.
Question:
5. balance sheet
Answer:
list of an entity's assets, liabilities, and owner's equity as of a specific date. also
called the statement of financial position.
Question:
6. board of directors
Answer:
group elected by the stockholders to set policy for a corporation and to appoint
its officers.
, Question:
7. capital
Answer:
another name for the owner's equity of a business
Question:
8. cash
Answer:
money and any medium of exchange that a bank accepts at face value.
Question:
9. common stock
Answer:
the most basic form of capital stock.
Question:
10. continuity (going concern) assumption
Answer:
holds that the entity will remain in operation for the foreseeable future.
Question:
11. corporation
Answer:
a business owned by stockholders. It is a legal entity, an "artificial person" in the
eyes of the law.
Question:
12. current asset
Answer:
an asset that is expected to be converted to cash, sold, or consumed during the
next 12 months or within the business's normal operating cycle if longer than a
year.
Question:
13. current liability
Answer:
a debt due to be paid within one year or within the entity's operating cycle if the
cycle is longer than a year.
