accounting 110 final UPDATED Exam
Questions and CORRECT Answers
1. financial
2. managerial - CORRECT ANSWER - what are the two types of accounting?
Financial Accounting - CORRECT ANSWER - external users; measures value; emphasis
on past
managerial accounting - CORRECT ANSWER - internal users; adds value; emphasis on
future
managerial accounting does - CORRECT ANSWER - what accounting type has an
emphasis on future?
accounting - CORRECT ANSWER - info system that reports on the economic activities
and financial condition of a business
1. financing
2. investing
3. operating - CORRECT ANSWER - what are the 3 types of business activities?
financing - CORRECT ANSWER - where can the company get money?; creditors,
investors, owners
investing - CORRECT ANSWER - what is needed to run the business?; assets
operating - CORRECT ANSWER - how does a company make money?; revenue
,expenses, cost of goods sold, salaries and wage expenses, utilities expense, advertising expense -
CORRECT ANSWER - how do companies spend money?
expenses - CORRECT ANSWER - cost of assets consumed
1. sole proprietorship
2. partnership
3. corporation - CORRECT ANSWER - what are the 3 forms of business?
sole proprietorship - CORRECT ANSWER - - 1 owner
- easy to establish
- personally liable
partnership - CORRECT ANSWER - - 2 or more owners
- partners share the risk and rewards
- personally liable
corperation - CORRECT ANSWER - - separate legal entity (stockholders not personally
liable)
- double taxation
- continuity of existence
- easy transfer of ownership-selling stock
- ability to raise capital
1. assets
2. liabilities
3. equity
4. revenues
, 5. expenses - CORRECT ANSWER - what are the 5 account categories?
assets - CORRECT ANSWER - "things of value"; "OWNED"; what makes the company
money; turn into cash
cash - CORRECT ANSWER - checking account; savings account; money market
accounts receivable (AR) - CORRECT ANSWER - this contains the amount of money that
is owed to the business by its customers
cash; accounts receivable; supplies; prepaids; inventory; non current assets - CORRECT
ANSWER - what are examples of assets?
prepaids - CORRECT ANSWER - cost of a prepayment; prepaid insurance; prepaid rent
inventory - CORRECT ANSWER - raw materials; work in progress; finished goods
noncurrent assets - CORRECT ANSWER - plant; property; equipment
liabilities - CORRECT ANSWER - debt or obligations owed by a buisness
accounts payable (AP); unearned revenue; notes payable - CORRECT ANSWER - what
are examples of liabilities?
accounts payable - CORRECT ANSWER - business credit card; invoices owed by
company
unearned revenue - CORRECT ANSWER - services or products that the business owes its
customers; downpayment
Questions and CORRECT Answers
1. financial
2. managerial - CORRECT ANSWER - what are the two types of accounting?
Financial Accounting - CORRECT ANSWER - external users; measures value; emphasis
on past
managerial accounting - CORRECT ANSWER - internal users; adds value; emphasis on
future
managerial accounting does - CORRECT ANSWER - what accounting type has an
emphasis on future?
accounting - CORRECT ANSWER - info system that reports on the economic activities
and financial condition of a business
1. financing
2. investing
3. operating - CORRECT ANSWER - what are the 3 types of business activities?
financing - CORRECT ANSWER - where can the company get money?; creditors,
investors, owners
investing - CORRECT ANSWER - what is needed to run the business?; assets
operating - CORRECT ANSWER - how does a company make money?; revenue
,expenses, cost of goods sold, salaries and wage expenses, utilities expense, advertising expense -
CORRECT ANSWER - how do companies spend money?
expenses - CORRECT ANSWER - cost of assets consumed
1. sole proprietorship
2. partnership
3. corporation - CORRECT ANSWER - what are the 3 forms of business?
sole proprietorship - CORRECT ANSWER - - 1 owner
- easy to establish
- personally liable
partnership - CORRECT ANSWER - - 2 or more owners
- partners share the risk and rewards
- personally liable
corperation - CORRECT ANSWER - - separate legal entity (stockholders not personally
liable)
- double taxation
- continuity of existence
- easy transfer of ownership-selling stock
- ability to raise capital
1. assets
2. liabilities
3. equity
4. revenues
, 5. expenses - CORRECT ANSWER - what are the 5 account categories?
assets - CORRECT ANSWER - "things of value"; "OWNED"; what makes the company
money; turn into cash
cash - CORRECT ANSWER - checking account; savings account; money market
accounts receivable (AR) - CORRECT ANSWER - this contains the amount of money that
is owed to the business by its customers
cash; accounts receivable; supplies; prepaids; inventory; non current assets - CORRECT
ANSWER - what are examples of assets?
prepaids - CORRECT ANSWER - cost of a prepayment; prepaid insurance; prepaid rent
inventory - CORRECT ANSWER - raw materials; work in progress; finished goods
noncurrent assets - CORRECT ANSWER - plant; property; equipment
liabilities - CORRECT ANSWER - debt or obligations owed by a buisness
accounts payable (AP); unearned revenue; notes payable - CORRECT ANSWER - what
are examples of liabilities?
accounts payable - CORRECT ANSWER - business credit card; invoices owed by
company
unearned revenue - CORRECT ANSWER - services or products that the business owes its
customers; downpayment
