Financial Accounting ENTRY EXAM
QUESTIONS WITH VERIFIED ANSWERS
LATEST UPDATE SOLUTIONS 2024-2025
ALREADY GRADED A
Accounting - ANSWER>>System that collects and processes (analyzes, measures, and
records) financial information about an organization and reports that information to decision
makers.
Accounting entity - ANSWER>>Is the organization for with financial data are to be
collected.
The four basic statements: - ANSWER>>1. Balance Sheet
2. Income Statement
3. Statement of Retained Earnings
4. Statement of Cash flows
Balance Sheet - ANSWER>>Reports the amount of assets, liabilities and stockholders' equity
of an accounting entry at a point in time.
,Income Statement - ANSWER>>Reports the revenues less the expenses of the accounting
period.
Statement of Retained Earnings - ANSWER>>Reports the way that net income and the
distribution of dividends affected the financial position of the company during the
accounting period.
Statement of Cash Flows - ANSWER>>Reports inflows and outflows of cash during the
accounting period in the categories of operating, investing, and financing.
Basic Accounting Equation - ANSWER>>Assets = Liabilities + Stockholders' Equity
Assets - ANSWER>>Are the economic resources owned by the company. Each of these
economic resources is expected to provide future benefits to the firm.
Liabilities - ANSWER>>Are the company's debts or obligations. Which will be paid with
assets or services.
Stockholders' Equity (Owners' Equity) - ANSWER>>Indicates the amount of financing
provided by owners of the business and earnings. Is the sum of the contribute capital + the
retained earnings.
Accounting Period - ANSWER>>Is the time period cover by the financial statements.
Elements of the Income Statement - ANSWER>>Revenues, Expenses and Net Income.
, Revenues - ANSWER>>Earnings from the sale of goods or services to costumers. Revenues
are reported whether or not have yet been paid for.
Expenses - ANSWER>>Represent the dollar amount of resources the entity used to earn
revenue during the period.
Net Income ("the bottom line") - ANSWER>>Is the excess of total revenues over total
expenses.
Net Loss - ANSWER>>If total expenses exceed total revenues.
Retained Earning Equation - ANSWER>>Ending Retained Earnings = (Beginning of Retained
Earnings + Net Income) - Dividends
The Cash Flow Statement Equation - ANSWER>>+/- Cash flow from Operating Activities
(CFO)
+/- Cash flow from Investing Activities (CFI)
+/- Cash flow from Financing Activities (CFF)
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Change in Cash
Cash Flow from Operating Activities, and examples - ANSWER>>CFO- Are cash flow that are
directly related to earning income. Example, collecting cash from costumers, pay salaries,
pay bills, pay to suppliers.
QUESTIONS WITH VERIFIED ANSWERS
LATEST UPDATE SOLUTIONS 2024-2025
ALREADY GRADED A
Accounting - ANSWER>>System that collects and processes (analyzes, measures, and
records) financial information about an organization and reports that information to decision
makers.
Accounting entity - ANSWER>>Is the organization for with financial data are to be
collected.
The four basic statements: - ANSWER>>1. Balance Sheet
2. Income Statement
3. Statement of Retained Earnings
4. Statement of Cash flows
Balance Sheet - ANSWER>>Reports the amount of assets, liabilities and stockholders' equity
of an accounting entry at a point in time.
,Income Statement - ANSWER>>Reports the revenues less the expenses of the accounting
period.
Statement of Retained Earnings - ANSWER>>Reports the way that net income and the
distribution of dividends affected the financial position of the company during the
accounting period.
Statement of Cash Flows - ANSWER>>Reports inflows and outflows of cash during the
accounting period in the categories of operating, investing, and financing.
Basic Accounting Equation - ANSWER>>Assets = Liabilities + Stockholders' Equity
Assets - ANSWER>>Are the economic resources owned by the company. Each of these
economic resources is expected to provide future benefits to the firm.
Liabilities - ANSWER>>Are the company's debts or obligations. Which will be paid with
assets or services.
Stockholders' Equity (Owners' Equity) - ANSWER>>Indicates the amount of financing
provided by owners of the business and earnings. Is the sum of the contribute capital + the
retained earnings.
Accounting Period - ANSWER>>Is the time period cover by the financial statements.
Elements of the Income Statement - ANSWER>>Revenues, Expenses and Net Income.
, Revenues - ANSWER>>Earnings from the sale of goods or services to costumers. Revenues
are reported whether or not have yet been paid for.
Expenses - ANSWER>>Represent the dollar amount of resources the entity used to earn
revenue during the period.
Net Income ("the bottom line") - ANSWER>>Is the excess of total revenues over total
expenses.
Net Loss - ANSWER>>If total expenses exceed total revenues.
Retained Earning Equation - ANSWER>>Ending Retained Earnings = (Beginning of Retained
Earnings + Net Income) - Dividends
The Cash Flow Statement Equation - ANSWER>>+/- Cash flow from Operating Activities
(CFO)
+/- Cash flow from Investing Activities (CFI)
+/- Cash flow from Financing Activities (CFF)
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Change in Cash
Cash Flow from Operating Activities, and examples - ANSWER>>CFO- Are cash flow that are
directly related to earning income. Example, collecting cash from costumers, pay salaries,
pay bills, pay to suppliers.
