ACCT 201A Final Exam Review- Part 1 CORRECT 100%

ACCT 201A Final Exam Review- Part 1
CORRECT 100%
Which definition best describes financial accounting? - ANSWERMeasuring a
company's business activities and communicating those measurements to external
parties.

The financial statement that shows the financial position of a company at a specific
point in time is called the: - ANSWERBalance Sheet

Which financial statement shows a company's revenues and expenses? -
ANSWERIncome Statement

The balance in retained earnings represents: - ANSWERThe amount of income
earned over the company's life minus the dividends paid to shareholders over the
company's life.

The primary function(s) of financial accounting is(are) to: - ANSWERMeasure
business activities of a company and communicate information about business
activities to outside users.
Correct

Financial accounting provides information primarily to: - ANSWERInvestors and
creditors.

Which of the following represents a resource of the company? - ANSWERAsset

Which of the following represents an obligation of the company? -
ANSWERLiabilities

Which of the following describes the cost of selling to customers? -
ANSWERExpenses

Which of the following equations correctly represents the fundamental accounting
equation? - ANSWERAssets = Liabilities + Stockholders' Equity.

Expenses represent: - ANSWERCosts of providing products or services to
customers.

Amounts owed to creditors are reported as: - ANSWERLiabilities

In which financial statement does a company report its revenues? - ANSWERIncome
Statement


Who ultimately is responsible for properly applying GAAP? The company's: -
ANSWERManagement