ACCOUNTING 200 FINAL EXAM UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Private Company
Answer:
ownership in the company is privately held. Stocks are not on the market
Question:
2. Public Company
Answer:
the investing public owns the company. The ownership rights of the company is
freely bought and sold in a public market
Question:
3. Asset
Answer:
Resources of the company
Question:
4. Liabilities
Answer:
A present obligation of the entity to transfer an economic resource as a result of
past events
Question:
5. Equity
Answer:
remaining claim against the assets of a business after liabilities have been satisfied
Question:
6. Balance Sheet
Answer:
presents the accounting equation at a particular point in time
Question:
7. Current Assets
Answer:
Converted into cash within one year and are sorted based on liquidity
, Question:
8. Non current assets
Answer:
land, tangible assets, operating leases, intangible assets
Question:
9. How are investments measured?
Answer:
At fair value
Question:
10. When do investments exit the balance sheet?
Answer:
When they are sold in exchange for cash
Question:
11. When does cash exit the balance sheet
Answer:
purchase an asset, pay off a liability, pay a dividend
Question:
12. Accounts Receiveable
Answer:
IOU from customers ie a credit sale
Question:
13. How are accounts receivables measured
Answer:
Total amount owed from customers - allowance for doubtful accounts
Question:
14. When do account receivables exit the balance sheet?
Answer:
cash is collected from customer, receivable is deemed uncollectible, sells it to a
bank
Question:
15. Allowance for doubtful accounts
Answer:
estimate of the amount of accounts receivable that the company does not expect
to collect. It is a contra-asset
QUESTIONS AND CORRECT ANSWERS
Question:
1. Private Company
Answer:
ownership in the company is privately held. Stocks are not on the market
Question:
2. Public Company
Answer:
the investing public owns the company. The ownership rights of the company is
freely bought and sold in a public market
Question:
3. Asset
Answer:
Resources of the company
Question:
4. Liabilities
Answer:
A present obligation of the entity to transfer an economic resource as a result of
past events
Question:
5. Equity
Answer:
remaining claim against the assets of a business after liabilities have been satisfied
Question:
6. Balance Sheet
Answer:
presents the accounting equation at a particular point in time
Question:
7. Current Assets
Answer:
Converted into cash within one year and are sorted based on liquidity
, Question:
8. Non current assets
Answer:
land, tangible assets, operating leases, intangible assets
Question:
9. How are investments measured?
Answer:
At fair value
Question:
10. When do investments exit the balance sheet?
Answer:
When they are sold in exchange for cash
Question:
11. When does cash exit the balance sheet
Answer:
purchase an asset, pay off a liability, pay a dividend
Question:
12. Accounts Receiveable
Answer:
IOU from customers ie a credit sale
Question:
13. How are accounts receivables measured
Answer:
Total amount owed from customers - allowance for doubtful accounts
Question:
14. When do account receivables exit the balance sheet?
Answer:
cash is collected from customer, receivable is deemed uncollectible, sells it to a
bank
Question:
15. Allowance for doubtful accounts
Answer:
estimate of the amount of accounts receivable that the company does not expect
to collect. It is a contra-asset
