MGT 6201 ACCOUNTING EXAM |
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, Financial Accounting (what is it) Communicating the economic health of a business to external users
Investors Use Information to decide whether to buy/sell stock (Risk vs. Return)
Creditors (Banks/Lendors) Use information to decide whether to lend money
GAAP Generally Accepted Accounting Principles: Rulebook companies in US must follow
FASB (Financial Accounting Standards Board): Group that writes the GAAP
SEC (Securities and Exchange Commission): The "enforcer" that ensures public companies
follow the rules
The Balance Sheet (definition) Shows the financial position at a specific point in time (snapshot) (e.g. "As of Dec 31,
2024")
Accounting Equation Assets = Liabilities + Stockholders' Equity (ALOE)
Assets Resources owned/controlled by company that will provide future economic benefit
(Cash, inventory, equipment)
Liabilities Claims by creditors; what you owe (Accounts Payable, Debt)
Stockholders' Equity Claims by owners, what is left over after liabilities are paid (Common Stock, Retained
Earnings)
Income Statement (definition) Shows performance over a period of time (e.g. "for the year ended Dec 21, 2024")
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, Financial Accounting (what is it) Communicating the economic health of a business to external users
Investors Use Information to decide whether to buy/sell stock (Risk vs. Return)
Creditors (Banks/Lendors) Use information to decide whether to lend money
GAAP Generally Accepted Accounting Principles: Rulebook companies in US must follow
FASB (Financial Accounting Standards Board): Group that writes the GAAP
SEC (Securities and Exchange Commission): The "enforcer" that ensures public companies
follow the rules
The Balance Sheet (definition) Shows the financial position at a specific point in time (snapshot) (e.g. "As of Dec 31,
2024")
Accounting Equation Assets = Liabilities + Stockholders' Equity (ALOE)
Assets Resources owned/controlled by company that will provide future economic benefit
(Cash, inventory, equipment)
Liabilities Claims by creditors; what you owe (Accounts Payable, Debt)
Stockholders' Equity Claims by owners, what is left over after liabilities are paid (Common Stock, Retained
Earnings)
Income Statement (definition) Shows performance over a period of time (e.g. "for the year ended Dec 21, 2024")
