MGT 6201 ACCOUNTING TEST |
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, Management Discussion and Analysis (MD&A) o Management talking about what happened in the past period and what they think will
happen in the future
o Relevant but not reliable because this letter doesn't require GAAP practices
Balance Sheet describes the sources and uses of funds of a firm at a point in time. Useful for:
· Evaluating capital structure
· Assessing risk and future cash flows
Assets Economic resources that are owned or controlled by a company that have future
economic benefit (we could trade it in for cash, rent it, etc.)
· Examples of assets include: Cash, Accounts Receivables (A/R), Inventory, Land,
Buildings, Equipment, Copyrights, and Investments.
Historical Cost o Objective
o What if you paid for a similar item 10 years ago? Is it relevant today?
Market Value o What an asset would sell for today in a normal market transaction
o Useful
o Not always a faithful representation of the situation
o Relevant, but not an exact apples to apples comparison
Sources of funds Liabilities and Equity
Liabilities Future obligations to pay cash, transfer assets or provide services to another party
· Examples of liabilities include: Accounts Payable (A/P) [owed money to supplier], Notes
Payable (N/P) [owed money to financial institution (bank)], and Wages Payable.
Owner's Equity (Shareholders' Equity): The ownership interest in the net assets of an entity
· Examples of owners' equity include: Capital Stock, Preferred Stock, and Retained
Earnings (RE)
Three things on a Financial Statement · Company name
· Type of statement (balance sheet)
· Date (i.e. As of 1/13/2026)
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, Management Discussion and Analysis (MD&A) o Management talking about what happened in the past period and what they think will
happen in the future
o Relevant but not reliable because this letter doesn't require GAAP practices
Balance Sheet describes the sources and uses of funds of a firm at a point in time. Useful for:
· Evaluating capital structure
· Assessing risk and future cash flows
Assets Economic resources that are owned or controlled by a company that have future
economic benefit (we could trade it in for cash, rent it, etc.)
· Examples of assets include: Cash, Accounts Receivables (A/R), Inventory, Land,
Buildings, Equipment, Copyrights, and Investments.
Historical Cost o Objective
o What if you paid for a similar item 10 years ago? Is it relevant today?
Market Value o What an asset would sell for today in a normal market transaction
o Useful
o Not always a faithful representation of the situation
o Relevant, but not an exact apples to apples comparison
Sources of funds Liabilities and Equity
Liabilities Future obligations to pay cash, transfer assets or provide services to another party
· Examples of liabilities include: Accounts Payable (A/P) [owed money to supplier], Notes
Payable (N/P) [owed money to financial institution (bank)], and Wages Payable.
Owner's Equity (Shareholders' Equity): The ownership interest in the net assets of an entity
· Examples of owners' equity include: Capital Stock, Preferred Stock, and Retained
Earnings (RE)
Three things on a Financial Statement · Company name
· Type of statement (balance sheet)
· Date (i.e. As of 1/13/2026)
