ACCOUNTING AND FINANCE EXAMS (LATEST 2026/2027) | COMPLETE ACTUAL EXAM | QUESTIONS & 100% VERIFIED CORRECT ANSWERS | OBJECTIVE ASSESSMENT | | GUARANTEED A+ | BRAND NEW UPDATE!

ACCOUNTING AND FINANCE EXAMS (LATEST 2026/2027) | COMPLETE ACTUAL EXAM | QUESTIONS & 100% VERIFIED CORRECT ANSWERS | OBJECTIVE ASSESSMENT | PRE ASSESSMENT INCLUDED | GUARANTEED A+ | BRAND NEW UPDATE! Accounting - ANSWER a system for recognizing, organizing, analyzing, and reporting information about the financial transactions that affect an organization Financial Accounting - ANSWER the branch of accounting that prepares financial statements for use by owners, creditors, suppliers, and other external stakeholders Managerial Accounting - ANSWER the branch of accounting that provides reports and analysis to managers to help them make informed business decisions Generally Accepted Accounting Principles (GAAP) - ANSWER a set of accounting standards that is used in the preparation of financial statements Balance Sheet - ANSWER and owner's equity A financial statement that reports assets, liabilities, Accounting Equation - ANSWER Assets = Liabilities + Owner's Equity Assets - ANSWER money and other valuables belonging to an individual or business Liabilities - ANSWER Money or debts owed to others. Owner's Equity - ANSWER company's assets the claims a firm's owners have against their Income Statement - ANSWER revenues, expenses, and net income revenue - ANSWER the financial statement that reports the increases in a firm's assets that result from the sale of goods, providing of services, or other activities to earn income expenses - ANSWER operations net income - ANSWER the expenses it incurs resources that are used up as the result of business the difference between the revenue a firm earns and Statement of Cash Flows - ANSWER firm's sources and uses of cash horizontal analysis - ANSWER the financial statement that identifies a analysis of financial statements that compares account values reported on these statements over two or more years to identify changes and trends budgeting - ANSWER planning through which businesses decide how to allocate available money to best accomplish company goals operating budget - ANSWER budgets that communicate an organization's sales and production goals and the resources needed to achieve these goals financial budget - ANSWER budgets that focus on the firm's financial goals and identify the resources needed to achieve these goals master budget - ANSWER a presentation that represents the firm's overall plan of action for a specified time period cost - ANSWER the value of what is given in exchange for something out-of-pocket cost (also called explicit cost) - ANSWER the payment of money or other resources implicit cost - ANSWER a cost that involves a non-monetary opportunity cost fixed costs - ANSWER variable costs - ANSWER direct cost - ANSWER specific cost object costs that do not vary with production or sales level costs that vary directly with the level of production costs that are incurred directly as the result of some indirect cost - ANSWER costs that are a result of a firm's general operations and are not directly tied to any specific cost object financial capital - ANSWER finance its operations Accounting - ANSWER the funds a firm uses to acquire its assets and Method of reporting financial activity of a business Financial transactions - ANSWER Recorded in an orderly fashion Assets - ANSWER Anything of value owned by the business Liabilities - ANSWER Money owed by a business Equity - ANSWER Owner's share of the business Financial Statements - ANSWER health of a company Balance Sheet - ANSWER Written reports that describe the financial Reports assets, liabilities, and owner's equity on a certain date Owner's Equity - ANSWER Net worth of the business