ACG 2021 Patterson FSU Exam 1 Questions With
Correct Answers
/. Which financial statement would CASH accounts and balances be reported? -
Answer-Balance Sheet and Cash Flows Statement
.Which financial statement would REVENUE accounts and balances be reported? -
Answer-Income statement
.Which financial statement would RETAINED EARNING accounts and balances be
reported? - Answer-Statement of Stockholders equity and balance sheet
.Which financial statement would DIVIDEND accounts and balances be reported? -
Answer-Cash flow statement and Statement of Stockholders' equity
.Which financial statement would ACOUNTS PAYABLE accounts and balances be
reported? - Answer-Balance Sheet
.Which financial statement would UNEARNED REVENUE accounts and balances be
reported? - Answer-Balance Sheet
.Which financial statement would COST OF GOODS SOLD accounts and balances be
reported? - Answer-Income Statement and Balance Sheet
.Which financial statement would INVENTORY accounts and balances be reported? -
Answer-Inventory is not recorded on the financial statements.
.Which financial statement would COMMON STOCK accounts and balances be
reported? - Answer-Statement of Stockholders Equity and Balance Sheet
.Classify ACOUNTS PAYABLE by current asset, long-term investment, property, plant &
equipment, intangible asset, current liability, long-term liability, equity, revenue, and
expense - Answer-Current Liability
HINT: Its on record that you['re going to pay it, but you haven't paid it yet, therefore its a
current liability.
.Classify PATENTS by current asset, long-term investment, property, plant &
equipment, intangible asset, current liability, long-term liability, equity, revenue, and
expense - Answer-Intangible Assets
Companies with a lot of intangible assets have low debt to asset ratios. They rely on
EQUITY rather than LOANS
HINT: Non-physical. but identifiable.
, EX: Trademarks
.Classify SERVICE REVENUE by current asset, long-term investment, property, plant &
equipment, intangible asset, current liability, long-term liability, equity, revenue, and
expense - Answer-Revenue
Service revenue is a revenue for services.
EX: You hire someone to mow your lawn, they complete the SERVICE and you pay
them. They just earned revenue.
.Classify RETAINED EARNINGS by current asset, long-term investment, property, plant
& equipment, intangible asset, current liability, long-term liability, equity, revenue, and
expense - Answer-Equity
Retained Earnings are a company's net income and other activities retained by the
company as additional equity capital.
.Classify SHORT-TERM INVESTMENTS by current asset, long-term investment,
property, plant & equipment, intangible asset, current liability, long-term liability, equity,
revenue, and expense - Answer-Current Asset
Current assets are any assets that can be converted into cash WITHIN 1 year.
HINT: SHORT-TERM is a current asset because SHORT TERM = within 1 year
.Classify INVESTMENTS IN SECURITIES by current asset, long-term investment,
property, plant & equipment, intangible asset, current liability, long-term liability, equity,
revenue, and expense - Answer-Long-term investments
Investment in securities are meant to be hold on for a while, making them long-term
investments.
HINT: Secure is long term!
.Classify UNEARNED REVENUES by current asset, long-term investment, property,
plant & equipment, intangible asset, current liability, long-term liability, equity, revenue,
and expense - Answer-Current Liability
It is treated as a liability because the revenue has still not been earned and represents
products or services owed to a customer
HINT: if it's unearned, it's a liability.
.Classify COST OF GOODS SOLD by current asset, long-term investment, property,
plant & equipment, intangible asset, current liability, long-term liability, equity, revenue,
and expense - Answer-Expense
Correct Answers
/. Which financial statement would CASH accounts and balances be reported? -
Answer-Balance Sheet and Cash Flows Statement
.Which financial statement would REVENUE accounts and balances be reported? -
Answer-Income statement
.Which financial statement would RETAINED EARNING accounts and balances be
reported? - Answer-Statement of Stockholders equity and balance sheet
.Which financial statement would DIVIDEND accounts and balances be reported? -
Answer-Cash flow statement and Statement of Stockholders' equity
.Which financial statement would ACOUNTS PAYABLE accounts and balances be
reported? - Answer-Balance Sheet
.Which financial statement would UNEARNED REVENUE accounts and balances be
reported? - Answer-Balance Sheet
.Which financial statement would COST OF GOODS SOLD accounts and balances be
reported? - Answer-Income Statement and Balance Sheet
.Which financial statement would INVENTORY accounts and balances be reported? -
Answer-Inventory is not recorded on the financial statements.
.Which financial statement would COMMON STOCK accounts and balances be
reported? - Answer-Statement of Stockholders Equity and Balance Sheet
.Classify ACOUNTS PAYABLE by current asset, long-term investment, property, plant &
equipment, intangible asset, current liability, long-term liability, equity, revenue, and
expense - Answer-Current Liability
HINT: Its on record that you['re going to pay it, but you haven't paid it yet, therefore its a
current liability.
.Classify PATENTS by current asset, long-term investment, property, plant &
equipment, intangible asset, current liability, long-term liability, equity, revenue, and
expense - Answer-Intangible Assets
Companies with a lot of intangible assets have low debt to asset ratios. They rely on
EQUITY rather than LOANS
HINT: Non-physical. but identifiable.
, EX: Trademarks
.Classify SERVICE REVENUE by current asset, long-term investment, property, plant &
equipment, intangible asset, current liability, long-term liability, equity, revenue, and
expense - Answer-Revenue
Service revenue is a revenue for services.
EX: You hire someone to mow your lawn, they complete the SERVICE and you pay
them. They just earned revenue.
.Classify RETAINED EARNINGS by current asset, long-term investment, property, plant
& equipment, intangible asset, current liability, long-term liability, equity, revenue, and
expense - Answer-Equity
Retained Earnings are a company's net income and other activities retained by the
company as additional equity capital.
.Classify SHORT-TERM INVESTMENTS by current asset, long-term investment,
property, plant & equipment, intangible asset, current liability, long-term liability, equity,
revenue, and expense - Answer-Current Asset
Current assets are any assets that can be converted into cash WITHIN 1 year.
HINT: SHORT-TERM is a current asset because SHORT TERM = within 1 year
.Classify INVESTMENTS IN SECURITIES by current asset, long-term investment,
property, plant & equipment, intangible asset, current liability, long-term liability, equity,
revenue, and expense - Answer-Long-term investments
Investment in securities are meant to be hold on for a while, making them long-term
investments.
HINT: Secure is long term!
.Classify UNEARNED REVENUES by current asset, long-term investment, property,
plant & equipment, intangible asset, current liability, long-term liability, equity, revenue,
and expense - Answer-Current Liability
It is treated as a liability because the revenue has still not been earned and represents
products or services owed to a customer
HINT: if it's unearned, it's a liability.
.Classify COST OF GOODS SOLD by current asset, long-term investment, property,
plant & equipment, intangible asset, current liability, long-term liability, equity, revenue,
and expense - Answer-Expense
