OCC BASIC KNOWLEDGE EXAM QUESTIONS AND
ANSWERS
The Financial Statements - Answers -1) Balance Sheet
2) Income Sheet (Statement of Profit & Loss)
3) Statement of Cash Flows
4) Statement of Owners' Equity
Balance Sheet Components - Answers -Assets
Liabilities
Owners' Equity
Income Statement Components - Answers -Revenues
Expenses
Net Income
Statement of Cash Flows Components - Answers -Operating Activities
Investing Activities
Financing Activities
Current Assets - Answers -Cash and Cash Equivalents
Accounts Receivable
Prepaid Expenses
Inventory
Marketable Securities
Current Liabilities - Answers -Account Payable
Accrued Liabilities (wages, interest payable, taxes payable, deferred revenues)
Long-Term Liabilities - 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) - 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
ANSWERS
The Financial Statements - Answers -1) Balance Sheet
2) Income Sheet (Statement of Profit & Loss)
3) Statement of Cash Flows
4) Statement of Owners' Equity
Balance Sheet Components - Answers -Assets
Liabilities
Owners' Equity
Income Statement Components - Answers -Revenues
Expenses
Net Income
Statement of Cash Flows Components - Answers -Operating Activities
Investing Activities
Financing Activities
Current Assets - Answers -Cash and Cash Equivalents
Accounts Receivable
Prepaid Expenses
Inventory
Marketable Securities
Current Liabilities - Answers -Account Payable
Accrued Liabilities (wages, interest payable, taxes payable, deferred revenues)
Long-Term Liabilities - 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) - 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
