ACCT 2000 LSU EXAM 1, 2 AND 3 NEWEST WITH COMPLETE
SOLUTIONS 100% ACCURATE!!
ACCT 2000 LSU Exam 1, ACCT 2000 LSU Exam 2 and ACCT 2000 LSU Exam 3
ACCT 2000 LSU Exam 1
Classsified Balance Sheet - ANSWER Reports assets, liabilities and equity at specific
point in time
Operating Cycle - ANSWER Average amount of time it takes from purrchase of
inventory to collection of cash from customers
Liquidity - ANSWER order in which the asset will be converted into cash
Order of Liquidity - ANSWER cash, short term investments, acct receivable, inventory,
supplies, prepaid insurance
Accumulated depreciation - ANSWER The total of depreciation that a company has
taken on assets (subtracted)
Intangibles - ANSWER Assets that do not have a physical substance yet
Ratio - ANSWER Expresses the mathematical relationship between one quantity and
another
Probability ratio - ANSWER Measures the income or operating success for a company
for given period of time
,Working capital - ANSWER Current assets minus current liabilities
Liquidity ratio - ANSWER Measures the short-term ability of the company to pay its
maturing obligations and unexpected needs for cash
Current ratio (liquidity) - ANSWER Current assets/current liabilities
Solvency ratio - ANSWER Measures the ability of the company to survive over a long
period of time
Debt to total assets - ANSWER Total liabilities/total assets (lower number the better)
EPS (earnings per share) - ANSWER Net income-preferred dividends/avg common
shares
Generally Accepted Accounting Principles (GAAP) - ANSWER Rules accountants have
to follow
Securities and Exchange Commission (SEC) - ANSWER Agency of US govt that
oversees US financial markets and accounting standard-setting bodies
Financial Accounting Standards Board (FASB) - ANSWER Makes the rules that appear
on GAAP. Private organization
International Acct Standards Board (IASB) - ANSWER Issues standards/makes the
rules for overseas countries
Public Company Acct Oversight Board - ANSWER Issue auditing standards and review
performance of audit firms
, FASB's Useful information - ANSWER Relevant and faithful representation
Relevant - ANSWER Makes a difference in a decision. Futuristic info. And confirmatory
value
Faithful Representation - ANSWER Complete, neutral, and free from error
Comparability - ANSWER Results when different companies use the same accounting
principles
Consistency - ANSWER Results when a company uses the same principles and
methods from year to year
Verifiability - ANSWER Info that can be proved that it's free from error
Timeliness - ANSWER Info that is available to decision makers before it loses capacity
to influence decision makers
Understandability - ANSWER Info has this quality if it is presented in a clear and
concise fashion
Monetary unit assumption - ANSWER Requires that only things that can be expressed
in money are included in acct records
Economic entity assumption - ANSWER Every economic entity can be separately
identified and accounted for
Periodicity assumption - ANSWER States that the life of a business can be divided into
time periods
SOLUTIONS 100% ACCURATE!!
ACCT 2000 LSU Exam 1, ACCT 2000 LSU Exam 2 and ACCT 2000 LSU Exam 3
ACCT 2000 LSU Exam 1
Classsified Balance Sheet - ANSWER Reports assets, liabilities and equity at specific
point in time
Operating Cycle - ANSWER Average amount of time it takes from purrchase of
inventory to collection of cash from customers
Liquidity - ANSWER order in which the asset will be converted into cash
Order of Liquidity - ANSWER cash, short term investments, acct receivable, inventory,
supplies, prepaid insurance
Accumulated depreciation - ANSWER The total of depreciation that a company has
taken on assets (subtracted)
Intangibles - ANSWER Assets that do not have a physical substance yet
Ratio - ANSWER Expresses the mathematical relationship between one quantity and
another
Probability ratio - ANSWER Measures the income or operating success for a company
for given period of time
,Working capital - ANSWER Current assets minus current liabilities
Liquidity ratio - ANSWER Measures the short-term ability of the company to pay its
maturing obligations and unexpected needs for cash
Current ratio (liquidity) - ANSWER Current assets/current liabilities
Solvency ratio - ANSWER Measures the ability of the company to survive over a long
period of time
Debt to total assets - ANSWER Total liabilities/total assets (lower number the better)
EPS (earnings per share) - ANSWER Net income-preferred dividends/avg common
shares
Generally Accepted Accounting Principles (GAAP) - ANSWER Rules accountants have
to follow
Securities and Exchange Commission (SEC) - ANSWER Agency of US govt that
oversees US financial markets and accounting standard-setting bodies
Financial Accounting Standards Board (FASB) - ANSWER Makes the rules that appear
on GAAP. Private organization
International Acct Standards Board (IASB) - ANSWER Issues standards/makes the
rules for overseas countries
Public Company Acct Oversight Board - ANSWER Issue auditing standards and review
performance of audit firms
, FASB's Useful information - ANSWER Relevant and faithful representation
Relevant - ANSWER Makes a difference in a decision. Futuristic info. And confirmatory
value
Faithful Representation - ANSWER Complete, neutral, and free from error
Comparability - ANSWER Results when different companies use the same accounting
principles
Consistency - ANSWER Results when a company uses the same principles and
methods from year to year
Verifiability - ANSWER Info that can be proved that it's free from error
Timeliness - ANSWER Info that is available to decision makers before it loses capacity
to influence decision makers
Understandability - ANSWER Info has this quality if it is presented in a clear and
concise fashion
Monetary unit assumption - ANSWER Requires that only things that can be expressed
in money are included in acct records
Economic entity assumption - ANSWER Every economic entity can be separately
identified and accounted for
Periodicity assumption - ANSWER States that the life of a business can be divided into
time periods
