MBA Exam 2: Accounting questions
well answered graded A+
Balance Sheet - ANS ✔✔Takes a snapshot on a particular date. How much do I own? How much
do I owe? How much is left over?
Income Statement - ANS ✔✔Records changes to that picture Of the balance sheet overtime.
How much did I make? How much did I spend? How much was left over? What happened to
what I own and owe?
Statement of Cash Flows - ANS ✔✔Keeps track of cash. Where did the cash come from? Where
did the cash go?
Assets minus liabilities equal? - ANS ✔✔Shareholders equity
What has primary claim on funds? - ANS ✔✔Liabilities
Shareholders equity is the same as what? - ANS ✔✔Net income
Asset accounts are - ANS ✔✔Cash, marketable securities, accounts receivable, inventory,
advances to landlord, other prepaid expenses(all of these are current assets)
noncurrent assets - ANS ✔✔Land, buildings, equipment, intangible but measurable assets
Important financial statements - ANS ✔✔Balance sheet
Income statement
well answered graded A+
Balance Sheet - ANS ✔✔Takes a snapshot on a particular date. How much do I own? How much
do I owe? How much is left over?
Income Statement - ANS ✔✔Records changes to that picture Of the balance sheet overtime.
How much did I make? How much did I spend? How much was left over? What happened to
what I own and owe?
Statement of Cash Flows - ANS ✔✔Keeps track of cash. Where did the cash come from? Where
did the cash go?
Assets minus liabilities equal? - ANS ✔✔Shareholders equity
What has primary claim on funds? - ANS ✔✔Liabilities
Shareholders equity is the same as what? - ANS ✔✔Net income
Asset accounts are - ANS ✔✔Cash, marketable securities, accounts receivable, inventory,
advances to landlord, other prepaid expenses(all of these are current assets)
noncurrent assets - ANS ✔✔Land, buildings, equipment, intangible but measurable assets
Important financial statements - ANS ✔✔Balance sheet
Income statement
