Financial and Managerial
Accounting Exam Questions and
Answers 100% Pass
Money-Management Concept - CORRECT ANSWER:-A balance sheet does not
report all the facts about a business. This concept limits that amount or type of
information that can be reported.
Current Assets - CORRECT ANSWER:-Cash and other assets that are expected
to be converted into cash or used up in the near future, usually within one year.
Securities - CORRECT ANSWER:-Stocks and Bonds, they give valuable rights to
the entity that owns them
Marketable Securities - CORRECT ANSWER:-Securities that are expected to be
converted into cash within a year.
Cash and cash equivalents - CORRECT ANSWER:-Investments in safe, very
short-term funds, such as money market funds
, Account Receivable - CORRECT ANSWER:-an amount that is owed to the
business, usually by one of its customers, as a result of the ordinary extension of
credit. (i.e., customer electric bill)
Inventories - CORRECT ANSWER:-Goods being held for sale
Intangible Asset - CORRECT ANSWER:-An asset that can't be touched, e.g.,
insurance policy
Prepaid Expenses - CORRECT ANSWER:-A name for intangible current assets
that will be used in the future.
Tangible Assets - CORRECT ANSWER:-Assets that can be touched; they have
physical substance. They are also noncurrent assets.
Noncurrent Assets - CORRECT ANSWER:-Assets are expected to be used in the
entity for more than one year.
Accumulated Depreciation - CORRECT ANSWER:-A portion of the cost of this
asset has been subtracted from its original cost because it has been used up.
Investments - CORRECT ANSWER:-Considered a noncurrent, intangible asset.
E.g., securities, such as bonds.
Patents and Trademarks - CORRECT ANSWER:-Considered a noncurrent,
intangible asset.
Goodwill - CORRECT ANSWER:-When a company buys another company and
pays more than the value of its identifiable assets.
Accounting Exam Questions and
Answers 100% Pass
Money-Management Concept - CORRECT ANSWER:-A balance sheet does not
report all the facts about a business. This concept limits that amount or type of
information that can be reported.
Current Assets - CORRECT ANSWER:-Cash and other assets that are expected
to be converted into cash or used up in the near future, usually within one year.
Securities - CORRECT ANSWER:-Stocks and Bonds, they give valuable rights to
the entity that owns them
Marketable Securities - CORRECT ANSWER:-Securities that are expected to be
converted into cash within a year.
Cash and cash equivalents - CORRECT ANSWER:-Investments in safe, very
short-term funds, such as money market funds
, Account Receivable - CORRECT ANSWER:-an amount that is owed to the
business, usually by one of its customers, as a result of the ordinary extension of
credit. (i.e., customer electric bill)
Inventories - CORRECT ANSWER:-Goods being held for sale
Intangible Asset - CORRECT ANSWER:-An asset that can't be touched, e.g.,
insurance policy
Prepaid Expenses - CORRECT ANSWER:-A name for intangible current assets
that will be used in the future.
Tangible Assets - CORRECT ANSWER:-Assets that can be touched; they have
physical substance. They are also noncurrent assets.
Noncurrent Assets - CORRECT ANSWER:-Assets are expected to be used in the
entity for more than one year.
Accumulated Depreciation - CORRECT ANSWER:-A portion of the cost of this
asset has been subtracted from its original cost because it has been used up.
Investments - CORRECT ANSWER:-Considered a noncurrent, intangible asset.
E.g., securities, such as bonds.
Patents and Trademarks - CORRECT ANSWER:-Considered a noncurrent,
intangible asset.
Goodwill - CORRECT ANSWER:-When a company buys another company and
pays more than the value of its identifiable assets.
