ACCOUNTING 1 EXAM 2025 QUESTIONS
AND ANSWERS
What two concerns of investors and creditors are summarized by the term "cash flow
prospects?" - ANS return of investment and return on investment
three financial statements used to communicate financial accounting info to interested external
parties - ANS balance sheet (statement of finical position), income statement, and statement
of cash flow
accounting system: - ANS the personnel, procedures, devices and records used by an entity
to develop accounting info and communicate this information to decision makers
External users of accounting information - ANS are individuals and other enterprises that
have a current or potential financial interest in the reporting enterprise, but that are not
involved in the day-to-day operations of that enterprise. External users of financial information
may include the following: owners, creditors, potential investors, labor unions, governmental
agencies, suppliers, customers, trade associations, and the general public.
There are three basic financial statements that we will study in this course. - ANS these three
include the balance sheet, income statement, and statement of cash flows.
balance sheet - ANS the balance sheet is often referred to as the statement of financial
position because it shows the resources of a business and the claims against those resources.
The income statement - ANS is often referred to as the statement of operations.
1 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
AND ANSWERS
What two concerns of investors and creditors are summarized by the term "cash flow
prospects?" - ANS return of investment and return on investment
three financial statements used to communicate financial accounting info to interested external
parties - ANS balance sheet (statement of finical position), income statement, and statement
of cash flow
accounting system: - ANS the personnel, procedures, devices and records used by an entity
to develop accounting info and communicate this information to decision makers
External users of accounting information - ANS are individuals and other enterprises that
have a current or potential financial interest in the reporting enterprise, but that are not
involved in the day-to-day operations of that enterprise. External users of financial information
may include the following: owners, creditors, potential investors, labor unions, governmental
agencies, suppliers, customers, trade associations, and the general public.
There are three basic financial statements that we will study in this course. - ANS these three
include the balance sheet, income statement, and statement of cash flows.
balance sheet - ANS the balance sheet is often referred to as the statement of financial
position because it shows the resources of a business and the claims against those resources.
The income statement - ANS is often referred to as the statement of operations.
1 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
