ACCT 451 Advanced
Financial Accounting Test
Bank New
Updated Questions &
Answers (Verified Answers)
- Athabasca University
accounting - ANSWER-The information system that identifies, records, and
communicates the economic events of an organization to interested users.
annual report - ANSWER-A report prepared by corporate management that presents
financial information including financial statements, a management discussion and
analysis section, notes, and an independent auditor's report.
Assets - ANSWER-resources owned by a business
Auditor's Report - ANSWER-A report prepared by an independent outside auditor
stating the auditor's opinion as to the fairness of the presentation of the financial
position and results of operations and their conformance with generally accepted
accounting principles.
Balance Sheet - ANSWER-A financial statement that reports the assets and claims to
those assets at a specific point in time.
Certified Public Accountant (CPA) - ANSWER-An individual who has met certain criteria
and is thus allowed to perform audits of corporations.
common stock - ANSWER-Term used to describe the total amount paid in by
stockholders for the shares they purchase.
, Corporation - ANSWER-a business organized as a separate legal entity owned by
stockholders
Dividends - ANSWER-payments of cash from a corporation to its stockholders
Expenses - ANSWER-The cost of assets consumed or services used in the process of
generating revenues, or the costs accumulated from operating the business.
Income Statement - ANSWER-A financial statement that reports a company's revenues
and expenses and resulting net income or net loss for a specific period of time.
Liabilities - ANSWER-Amounts owed to creditors in the form of debts and other
obligations.
Management discussion and analysis (MD&A) - ANSWER-A section of the annual
report that presents management's views on the company's ability to pay near-term
obligations, its ability to fund operations and expansion, and its results of operations.
Net Income - ANSWER-Revenues - Expenses
net loss - ANSWER-when expenses exceed revenues
Notes to the financial statements - ANSWER-Notes clarify information presented in the
financial statements and provide additional detail.
Partnership - ANSWER-A business owned by two or more persons associated as
partners.
retained earnings - ANSWER-the amount of net income retained in the corporation
Retained Earnings Statement - ANSWER-A financial statement that summarizes the
amounts and causes of changes in retained earnings for a specific time period.
Revenue - ANSWER-The increase in assets or decrease in liabilities resulting from the
sale of goods or performance of services in the normal course of business.
Sarbanes-Oxley Act - ANSWER-Regulations passed by Congress to reduce unethical
corporate behavior.
Sole Proprietorship - ANSWER-A business owned by one person
Statement of Cash Flows - ANSWER-A financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific
period of time.
Stockholders' Equity - ANSWER-The owners' claim to assets.
Financial Accounting Test
Bank New
Updated Questions &
Answers (Verified Answers)
- Athabasca University
accounting - ANSWER-The information system that identifies, records, and
communicates the economic events of an organization to interested users.
annual report - ANSWER-A report prepared by corporate management that presents
financial information including financial statements, a management discussion and
analysis section, notes, and an independent auditor's report.
Assets - ANSWER-resources owned by a business
Auditor's Report - ANSWER-A report prepared by an independent outside auditor
stating the auditor's opinion as to the fairness of the presentation of the financial
position and results of operations and their conformance with generally accepted
accounting principles.
Balance Sheet - ANSWER-A financial statement that reports the assets and claims to
those assets at a specific point in time.
Certified Public Accountant (CPA) - ANSWER-An individual who has met certain criteria
and is thus allowed to perform audits of corporations.
common stock - ANSWER-Term used to describe the total amount paid in by
stockholders for the shares they purchase.
, Corporation - ANSWER-a business organized as a separate legal entity owned by
stockholders
Dividends - ANSWER-payments of cash from a corporation to its stockholders
Expenses - ANSWER-The cost of assets consumed or services used in the process of
generating revenues, or the costs accumulated from operating the business.
Income Statement - ANSWER-A financial statement that reports a company's revenues
and expenses and resulting net income or net loss for a specific period of time.
Liabilities - ANSWER-Amounts owed to creditors in the form of debts and other
obligations.
Management discussion and analysis (MD&A) - ANSWER-A section of the annual
report that presents management's views on the company's ability to pay near-term
obligations, its ability to fund operations and expansion, and its results of operations.
Net Income - ANSWER-Revenues - Expenses
net loss - ANSWER-when expenses exceed revenues
Notes to the financial statements - ANSWER-Notes clarify information presented in the
financial statements and provide additional detail.
Partnership - ANSWER-A business owned by two or more persons associated as
partners.
retained earnings - ANSWER-the amount of net income retained in the corporation
Retained Earnings Statement - ANSWER-A financial statement that summarizes the
amounts and causes of changes in retained earnings for a specific time period.
Revenue - ANSWER-The increase in assets or decrease in liabilities resulting from the
sale of goods or performance of services in the normal course of business.
Sarbanes-Oxley Act - ANSWER-Regulations passed by Congress to reduce unethical
corporate behavior.
Sole Proprietorship - ANSWER-A business owned by one person
Statement of Cash Flows - ANSWER-A financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific
period of time.
Stockholders' Equity - ANSWER-The owners' claim to assets.
