Business Administration Exam
questions and answers graded A+
Accounting - ANS✅✅the recording, measurement, and interpretation of financial information
CPAs - ANS✅✅an individual who has been state certified to provide accounting services ranging
from the preparation of financial records and the fi ling of tax returns to complex audits of corporate
financial records
What are the top 3 accounting firms? - ANS✅✅Price Waterhouse Coopers
Ernest and Young
Deloitte
Private Accountants - ANS✅✅accountants employed by large corporations, government agencies,
and other organizations to prepare and analyze their financial statements
CMAs - ANS✅✅private accountants who, after rigorous examination, are certified by the National
Association of Accountants and who have some managerial responsibility
Managerial Accounting - ANS✅✅the internal use of accounting statements by managers in
planning and directing the organization's activities
Cash Flow - ANS✅✅the movement of money through an organization over a daily, weekly,
monthly, or yearly basis
Budget - ANS✅✅an internal financial plan that forecasts expenses and income over a set period of
time
Annual Report - ANS✅✅summary of a firm's fi nancial information, products, and growth plans for
owners and potential investors
Assets - ANS✅✅a firm's economic resources, or items of value that it owns, such as cash,
inventory, land, equipment, buildings, and other tangible and intangible things
, Liabilities - ANS✅✅debts that a firm owes to others
Owners Equity - ANS✅✅equals assets minus liabilities and reflects historical values
Accounting Equation - ANS✅✅equals assets minus liabilities and refl ects historical values
Assets= - ANS✅✅Liabilities+Owners Equity
Double Entry Bookkeeping - ANS✅✅a system of recording and classifying business transactions
that maintains the balance of the accounting equation
Income Statement - ANS✅✅a financial report that shows an organization's profitability over a
period of time—month, quarter, or year
Revenue - ANS✅✅the total amount of money received from the sale of goods or services, as well
as from related business activities
Cost of Goods Sold - ANS✅✅the amount of money a firm spent to buy or produce the products it
sold during the period to which the income statement applies
Gross Income - ANS✅✅revenues minus the cost of goods sold required to generate the revenues
Expenses - ANS✅✅day to day costs of operating a company
Depreciation - ANS✅✅the process of spreading the costs of long-lived assets such as buildings and
equipment over the total number of accounting periods in which they are expected to be used
Net Income - ANS✅✅the total profit (or loss) after all expenses, including taxes, have been
deducted from revenue; also called net earnings
Balance Sheet - ANS✅✅a "snapshot" of an organization's financial position at a given moment
questions and answers graded A+
Accounting - ANS✅✅the recording, measurement, and interpretation of financial information
CPAs - ANS✅✅an individual who has been state certified to provide accounting services ranging
from the preparation of financial records and the fi ling of tax returns to complex audits of corporate
financial records
What are the top 3 accounting firms? - ANS✅✅Price Waterhouse Coopers
Ernest and Young
Deloitte
Private Accountants - ANS✅✅accountants employed by large corporations, government agencies,
and other organizations to prepare and analyze their financial statements
CMAs - ANS✅✅private accountants who, after rigorous examination, are certified by the National
Association of Accountants and who have some managerial responsibility
Managerial Accounting - ANS✅✅the internal use of accounting statements by managers in
planning and directing the organization's activities
Cash Flow - ANS✅✅the movement of money through an organization over a daily, weekly,
monthly, or yearly basis
Budget - ANS✅✅an internal financial plan that forecasts expenses and income over a set period of
time
Annual Report - ANS✅✅summary of a firm's fi nancial information, products, and growth plans for
owners and potential investors
Assets - ANS✅✅a firm's economic resources, or items of value that it owns, such as cash,
inventory, land, equipment, buildings, and other tangible and intangible things
, Liabilities - ANS✅✅debts that a firm owes to others
Owners Equity - ANS✅✅equals assets minus liabilities and reflects historical values
Accounting Equation - ANS✅✅equals assets minus liabilities and refl ects historical values
Assets= - ANS✅✅Liabilities+Owners Equity
Double Entry Bookkeeping - ANS✅✅a system of recording and classifying business transactions
that maintains the balance of the accounting equation
Income Statement - ANS✅✅a financial report that shows an organization's profitability over a
period of time—month, quarter, or year
Revenue - ANS✅✅the total amount of money received from the sale of goods or services, as well
as from related business activities
Cost of Goods Sold - ANS✅✅the amount of money a firm spent to buy or produce the products it
sold during the period to which the income statement applies
Gross Income - ANS✅✅revenues minus the cost of goods sold required to generate the revenues
Expenses - ANS✅✅day to day costs of operating a company
Depreciation - ANS✅✅the process of spreading the costs of long-lived assets such as buildings and
equipment over the total number of accounting periods in which they are expected to be used
Net Income - ANS✅✅the total profit (or loss) after all expenses, including taxes, have been
deducted from revenue; also called net earnings
Balance Sheet - ANS✅✅a "snapshot" of an organization's financial position at a given moment
