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Seitz A100 Final Exam 2025
Financial accounting - Correct Ans-the records and related reports that are available to
people outside the company
Financing Activity - Correct Ans-raise funds for the company to expand/operate
investing activity - Correct Ans-investing in assets that it will use in its business
operations
operating activities - Correct Ans-not funding or investing
equity investors - Correct Ans-purchasers of stock, can either get dividends or sell
creditors - Correct Ans-loan company money. company raises funds thru debt. legal
right to receive money back - principal (make a loan contract w/ collateral, terms, and
maturity date
investing activities - Correct Ans-land, buildings, equipment to help company operate -
fixed assets. assets are supposed to last a long time and used in operations and not
sold.
operating activities - Correct Ans-salaries + wages, rent, utilities, insurance, purchasers
of goods to be resold.
1. Balance Sheet
2. Income statement
3. Statement of stockholder's equity
4. Statement of cash flows - Correct Ans-4 standard financial statements
1. Debitte
2.E&Y
3.KPMG
4. PwC - Correct Ans-Big 4 auditing companies
corporate governance
- important to have a good reputation, legal liabilities help with this, as well as ethics -
Correct Ans-the mechanisms in place within a company which inspire managers to
report the truth in their financial statements
GAAP - Correct Ans-The standards and rules that accountants follow while recording
and reporting financial activities.
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IFRS (International Financial Reporting Standards) - Correct Ans-A standardized set of
rules and practices in business accounting used in many countries as an alternative to
US GAAP. principal based - gives less guidance
reporting entities - Correct Ans-organizations that prepare financial statements. A profit
seeking business is typical.
1. Service
2. Retail
3. Manufacturing - Correct Ans-Types of profit seeking businesses
Capital markets - Correct Ans-networks that exist for making money. Public markets =
exchanges
Liabilities + Equity = Assets - Correct Ans-balance sheet equation
Balance Sheet - Correct Ans-A financial statement that reports assets, liabilities, and
owner's equity on a specific date.
outright - Correct Ans-no debt is associated with these assets
double-entry bookkeeping - Correct Ans-the practice of writing every business
transaction in two places
current assets - Correct Ans-cash and other assets expected to be exchanged for cash
or consumed within a year
Long-term investments - Correct Ans-assets purchased by the company to be held as
an investment
fixed assets - Correct Ans-assets that are relatively permanent, such as land, buildings,
and equipment
intangible assets - Correct Ans-assets that do not have physical substance. patents,
copyrights, trademarks
Current Liabilities - Correct Ans-debts expected to become due one year within balance
sheet
long-term liabilities - Correct Ans-amounts the company expects it will not need to pay
until after one year from the date on the balance sheet
common stock - Correct Ans-name of the basic stock type that all corporations have
retained earnings - Correct Ans-the total profits of the company (minus any losses) -
stockholders equity
SEITZ
Seitz A100 Final Exam 2025
Financial accounting - Correct Ans-the records and related reports that are available to
people outside the company
Financing Activity - Correct Ans-raise funds for the company to expand/operate
investing activity - Correct Ans-investing in assets that it will use in its business
operations
operating activities - Correct Ans-not funding or investing
equity investors - Correct Ans-purchasers of stock, can either get dividends or sell
creditors - Correct Ans-loan company money. company raises funds thru debt. legal
right to receive money back - principal (make a loan contract w/ collateral, terms, and
maturity date
investing activities - Correct Ans-land, buildings, equipment to help company operate -
fixed assets. assets are supposed to last a long time and used in operations and not
sold.
operating activities - Correct Ans-salaries + wages, rent, utilities, insurance, purchasers
of goods to be resold.
1. Balance Sheet
2. Income statement
3. Statement of stockholder's equity
4. Statement of cash flows - Correct Ans-4 standard financial statements
1. Debitte
2.E&Y
3.KPMG
4. PwC - Correct Ans-Big 4 auditing companies
corporate governance
- important to have a good reputation, legal liabilities help with this, as well as ethics -
Correct Ans-the mechanisms in place within a company which inspire managers to
report the truth in their financial statements
GAAP - Correct Ans-The standards and rules that accountants follow while recording
and reporting financial activities.
SEITZ
, SEITZ
IFRS (International Financial Reporting Standards) - Correct Ans-A standardized set of
rules and practices in business accounting used in many countries as an alternative to
US GAAP. principal based - gives less guidance
reporting entities - Correct Ans-organizations that prepare financial statements. A profit
seeking business is typical.
1. Service
2. Retail
3. Manufacturing - Correct Ans-Types of profit seeking businesses
Capital markets - Correct Ans-networks that exist for making money. Public markets =
exchanges
Liabilities + Equity = Assets - Correct Ans-balance sheet equation
Balance Sheet - Correct Ans-A financial statement that reports assets, liabilities, and
owner's equity on a specific date.
outright - Correct Ans-no debt is associated with these assets
double-entry bookkeeping - Correct Ans-the practice of writing every business
transaction in two places
current assets - Correct Ans-cash and other assets expected to be exchanged for cash
or consumed within a year
Long-term investments - Correct Ans-assets purchased by the company to be held as
an investment
fixed assets - Correct Ans-assets that are relatively permanent, such as land, buildings,
and equipment
intangible assets - Correct Ans-assets that do not have physical substance. patents,
copyrights, trademarks
Current Liabilities - Correct Ans-debts expected to become due one year within balance
sheet
long-term liabilities - Correct Ans-amounts the company expects it will not need to pay
until after one year from the date on the balance sheet
common stock - Correct Ans-name of the basic stock type that all corporations have
retained earnings - Correct Ans-the total profits of the company (minus any losses) -
stockholders equity
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