CBAD 201 exam 1 material questions well answered to pass

CBAD 201 exam 1 material questions
well answered to pass

what are financial statements? - correct answer ✔✔they are the business documents companies use to
report the results of their activities to stake holders i.e., stockholders, creditors, employee, customers
vendors and regulatory agencies



THEY USE THEM FOR DECISION MAKING



list of financial statements - correct answer ✔✔-balance sheet

-income statement

-statement of retained earnings

-cash flow statement



FINANCIAL STATEMENTS ARE BUILT ON THE "GENERAL ACCEPTED ACCOUNTING PRINCIPLES" (GAAP)



definition of Accounting the Language of Business - correct answer ✔✔accounting is an information
system that measures business activities, processes data into financial statements and reports, can
communicates results to decision makers



describe the decision makers who use accounting - correct answer ✔✔external decision makers i.e.,
stockholders and creditors



internal decision makers i.e., managers



government regulators



financial accounting - correct answer ✔✔provides relevant and accurate financial information to
external decision makers such as investors, creditors, government regulators mainly the Financial
statements i.e., Balance Sheet, Income Statement, Cash Flow Statement