OCC Basic Knowledge Exam || 100% Exam-Ready:
Questions & A+ Verified Solutions!!
The Financial Statements correct answers 1) Balance Sheet
2) Income Sheet (Statement of Profit & Loss)
3) Statement of Cash Flows
4) Statement of Owners' Equity
Balance Sheet Components correct answers Assets
Liabilities
Owners' Equity
Income Statement Components correct answers Revenues
Expenses
Net Income
Statement of Cash Flows Components correct answers Operating Activities
Investing Activities
Financing Activities
Current Assets correct answers Cash and Cash Equivalents
Accounts Receivable
Prepaid Expenses
Inventory
Marketable Securities
Current Liabilities correct answers Account Payable
Accrued Liabilities (wages, interest payable, taxes payable, deferred revenues)
Long-Term Liabilities correct answers Accrued Liabilities
Leases (Capital Lease, Operating Lease)
Pension Benefit Obligations
Contingent Liabilities (must be probable & estimable)
Notes Payable
Deferred Taxes Liability
Long-term Debt
Debits (Left) and Credits (Right) correct answers Debits-increase asset and expense accounts
and decrease liability and revenue accounts
Credits-increase liability and revenue accounts and decrease asset and expense accounts
Relationships between Balance Sheet and Income Statement items correct answers Net
income from the Income Statement that isn't paid out as a dividend becomes Retained
Earnings on the Balance Sheet
Time Value of Money (TVM) correct answers Money today is worth more than money in the
future due to its potential earning capacity
Questions & A+ Verified Solutions!!
The Financial Statements correct answers 1) Balance Sheet
2) Income Sheet (Statement of Profit & Loss)
3) Statement of Cash Flows
4) Statement of Owners' Equity
Balance Sheet Components correct answers Assets
Liabilities
Owners' Equity
Income Statement Components correct answers Revenues
Expenses
Net Income
Statement of Cash Flows Components correct answers Operating Activities
Investing Activities
Financing Activities
Current Assets correct answers Cash and Cash Equivalents
Accounts Receivable
Prepaid Expenses
Inventory
Marketable Securities
Current Liabilities correct answers Account Payable
Accrued Liabilities (wages, interest payable, taxes payable, deferred revenues)
Long-Term Liabilities correct answers Accrued Liabilities
Leases (Capital Lease, Operating Lease)
Pension Benefit Obligations
Contingent Liabilities (must be probable & estimable)
Notes Payable
Deferred Taxes Liability
Long-term Debt
Debits (Left) and Credits (Right) correct answers Debits-increase asset and expense accounts
and decrease liability and revenue accounts
Credits-increase liability and revenue accounts and decrease asset and expense accounts
Relationships between Balance Sheet and Income Statement items correct answers Net
income from the Income Statement that isn't paid out as a dividend becomes Retained
Earnings on the Balance Sheet
Time Value of Money (TVM) correct answers Money today is worth more than money in the
future due to its potential earning capacity
