MGT 6201 Accounting
Test Exam Questions
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Updated 2026
,Required Financial Statements
· Balance Sheet
· Income Statement
· Statement of Shareholders' Equity
· Statement of Cash flows
· Statement of Comprehensive Income
Financial Statement Footnotes
o Additional details of figures found in financial statements
Independent Auditor Report
o Auditor expressing if financial statements are done appropriately
Management Discussion and Analysis (MD&A)
o Management talking about what happened in the past period and what they think
will happen in the future
o Relevant but not reliable because this letter doesn't require GAAP practices
, Balance Sheet
describes the sources and uses of funds of a firm at a point in time. Useful for:
· Evaluating capital structure
· Assessing risk and future cash flows
Assets
Economic resources that are owned or controlled by a company that have future
economic benefit (we could trade it in for cash, rent it, etc.)
· Examples of assets include: Cash, Accounts Receivables (A/R), Inventory, Land, Buildings,
Equipment, Copyrights, and Investments.
Historical Cost
o Objective
o What if you paid for a similar item 10 years ago? Is it relevant today?
Market Value
o What an asset would sell for today in a normal market transaction
o Useful
o Not always a faithful representation of the situation
o Relevant, but not an exact apples to apples comparison
Sources of funds
Liabilities and Equity
Liabilities
Future obligations to pay cash, transfer assets or provide services to another party
· Examples of liabilities include: Accounts Payable (A/P) [owed money to supplier], Notes
Payable (N/P) [owed money to financial institution (bank)], and Wages Payable.
Test Exam Questions
Provided with Verified
Answers Latest
Updated 2026
,Required Financial Statements
· Balance Sheet
· Income Statement
· Statement of Shareholders' Equity
· Statement of Cash flows
· Statement of Comprehensive Income
Financial Statement Footnotes
o Additional details of figures found in financial statements
Independent Auditor Report
o Auditor expressing if financial statements are done appropriately
Management Discussion and Analysis (MD&A)
o Management talking about what happened in the past period and what they think
will happen in the future
o Relevant but not reliable because this letter doesn't require GAAP practices
, Balance Sheet
describes the sources and uses of funds of a firm at a point in time. Useful for:
· Evaluating capital structure
· Assessing risk and future cash flows
Assets
Economic resources that are owned or controlled by a company that have future
economic benefit (we could trade it in for cash, rent it, etc.)
· Examples of assets include: Cash, Accounts Receivables (A/R), Inventory, Land, Buildings,
Equipment, Copyrights, and Investments.
Historical Cost
o Objective
o What if you paid for a similar item 10 years ago? Is it relevant today?
Market Value
o What an asset would sell for today in a normal market transaction
o Useful
o Not always a faithful representation of the situation
o Relevant, but not an exact apples to apples comparison
Sources of funds
Liabilities and Equity
Liabilities
Future obligations to pay cash, transfer assets or provide services to another party
· Examples of liabilities include: Accounts Payable (A/P) [owed money to supplier], Notes
Payable (N/P) [owed money to financial institution (bank)], and Wages Payable.
