ACC 310F FINAL EXAM: (EXAM 3) | QUESTIONS
AND ANSWERS | 100% CORRECT
statement of cash flows - ANSWERS-operating (OPR), investing (INT),
financing (FIN) = change in cash
attracts cash into company and out of company by the types of activities
What are the types of business activities? - ANSWERS-operating (OPR),
investing (INT), financing (FIN)
financing (FIN) - ANSWERS-funds needed to start and operate a business
from owners or banks
ex. student loans
investing (INT) - ANSWERS-purchase (or sale) of long-term resources such
as land, a building, or equipment
ex. buying/selling a laptop, art
operating (OPR) - ANSWERS-day to day operations including things like
sales, payroll, or utilities
The Role of Accounting in Business (Chapter 1: Obj. 1-5)
Basic Accounting Systems: Cash Basis (Chapter 2: Obj. 1-5) - ANSWERS-The
Role of Accounting in Business (Chapter 1: Obj. 1-5)
Basic Accounting Systems: Cash Basis (Chapter 2: Obj. 1-5)
,accounting - ANSWERS-is an information system that provides reports to
stakeholders about the economic activities and condition of a business to
help make informed decisions
How do businesses make money? What are the basic levels of each type of
company?
Apple
Target
Netflix - ANSWERS-Apple: (manufacturer); buy parts, buy people to put
items together
Target: (merchandiser); buy phones from Apple, puts on shelf to sell
Netflix: (service provider); provide a service, don't sell anything, have to pay
costs for licensing
What types of financial statements are there? - ANSWERS-income
statement, balance sheet, statement of cash flows, statement of equity
income statement - ANSWERS-Revenues - Expenses = Net Income
revenue (value of products you sell), expenses (cost of food, etc.), net
income, operation performance (i.e. profits)
balance sheet - ANSWERS-Assets = Liabilities + Owners' Equity
what is owed, owned, and net worth of a company
, things to remember** - ANSWERS-every time owner puts money into
company = common stock
assets: things a company owns
liabilities: someone has a claim on things the company owns
the accounting framework can balance itself on one side
() negative #
= total
liabilities are positive when you owe money to the bank unless they are paid
off than they are negative
Practice problem 1 (a)
Identify each of the following transactions as an operating (OPR), investing
(INT), or financing (FIN) activity
A. Owner's invest $3,000 in the company
B. Purchased $500 of inventory
C. Purchased $1,000 of equipment
D. Borrowed $300 from a bank - ANSWERS-A. FIN (money needed to
continue business)
B. OPR (day-to-day activity)
C. INT (long-term resource)
D. FIN (needed sometimes to start; anything from bank)
Practice problem 1 (b)
Create an accounting framework and record the transactions from part (a) -
ANSWERS-Total:
AND ANSWERS | 100% CORRECT
statement of cash flows - ANSWERS-operating (OPR), investing (INT),
financing (FIN) = change in cash
attracts cash into company and out of company by the types of activities
What are the types of business activities? - ANSWERS-operating (OPR),
investing (INT), financing (FIN)
financing (FIN) - ANSWERS-funds needed to start and operate a business
from owners or banks
ex. student loans
investing (INT) - ANSWERS-purchase (or sale) of long-term resources such
as land, a building, or equipment
ex. buying/selling a laptop, art
operating (OPR) - ANSWERS-day to day operations including things like
sales, payroll, or utilities
The Role of Accounting in Business (Chapter 1: Obj. 1-5)
Basic Accounting Systems: Cash Basis (Chapter 2: Obj. 1-5) - ANSWERS-The
Role of Accounting in Business (Chapter 1: Obj. 1-5)
Basic Accounting Systems: Cash Basis (Chapter 2: Obj. 1-5)
,accounting - ANSWERS-is an information system that provides reports to
stakeholders about the economic activities and condition of a business to
help make informed decisions
How do businesses make money? What are the basic levels of each type of
company?
Apple
Target
Netflix - ANSWERS-Apple: (manufacturer); buy parts, buy people to put
items together
Target: (merchandiser); buy phones from Apple, puts on shelf to sell
Netflix: (service provider); provide a service, don't sell anything, have to pay
costs for licensing
What types of financial statements are there? - ANSWERS-income
statement, balance sheet, statement of cash flows, statement of equity
income statement - ANSWERS-Revenues - Expenses = Net Income
revenue (value of products you sell), expenses (cost of food, etc.), net
income, operation performance (i.e. profits)
balance sheet - ANSWERS-Assets = Liabilities + Owners' Equity
what is owed, owned, and net worth of a company
, things to remember** - ANSWERS-every time owner puts money into
company = common stock
assets: things a company owns
liabilities: someone has a claim on things the company owns
the accounting framework can balance itself on one side
() negative #
= total
liabilities are positive when you owe money to the bank unless they are paid
off than they are negative
Practice problem 1 (a)
Identify each of the following transactions as an operating (OPR), investing
(INT), or financing (FIN) activity
A. Owner's invest $3,000 in the company
B. Purchased $500 of inventory
C. Purchased $1,000 of equipment
D. Borrowed $300 from a bank - ANSWERS-A. FIN (money needed to
continue business)
B. OPR (day-to-day activity)
C. INT (long-term resource)
D. FIN (needed sometimes to start; anything from bank)
Practice problem 1 (b)
Create an accounting framework and record the transactions from part (a) -
ANSWERS-Total:
