Accounting 200 Midterm Exam Questions
With All Correct & Verified Answers
SEC Correct answer-Securities and exchange commisison- regulates the capital transactions of
public companies
GAAP Correct answer-The Standards of accounting that make the information comparable and
Credible
AICPA Correct answer-Initially set up by the SEC to monitor the GAAP. Now in charge of setting up
the auditing process
FASB Correct answer-Private board that now establishes the GAAP
Debt and Equity Correct answer-2 forms of financing
Debt financing Correct answer-Borrowed resources that must be repaid at specific future dates
(financing)
Equity Financing Correct answer-Contributions by investors, need not be repaid (financing)
Financial Accounting Correct answer-Provides information to creditors and to gov't through
financial statements.
Management accounting Correct answer-Provides information to management to help them make
decisions (interior)
Proprietorship, Partnership, Corporation Correct answer-3 types of business ownership
Salaries and bonuses to owners, Subchapter S. Election, Limited Liability corp. Correct answer-
Ways to evade double taxation
Subchapter S. Election Correct answer-For smaller corporations, allows them to be taxed as a
proprietorship/partnership
LLC (Limited Liability Corp) Correct answer-Liability protections as if it were a corporation but a
partnership for taxation
Shareholders, Board of Directors, Managers, Employees Correct answer-Organization of a
Corporation
Balance sheet Correct answer-The distribution of captital and where it was obtained
Statement of Cash flow Correct answer-Inflows and outflows of cash
Income Statement Correct answer-Statement that shows if the company was profitable or not
Assets = Liabilities + Owner's equity Correct answer-Balance sheet equation
With All Correct & Verified Answers
SEC Correct answer-Securities and exchange commisison- regulates the capital transactions of
public companies
GAAP Correct answer-The Standards of accounting that make the information comparable and
Credible
AICPA Correct answer-Initially set up by the SEC to monitor the GAAP. Now in charge of setting up
the auditing process
FASB Correct answer-Private board that now establishes the GAAP
Debt and Equity Correct answer-2 forms of financing
Debt financing Correct answer-Borrowed resources that must be repaid at specific future dates
(financing)
Equity Financing Correct answer-Contributions by investors, need not be repaid (financing)
Financial Accounting Correct answer-Provides information to creditors and to gov't through
financial statements.
Management accounting Correct answer-Provides information to management to help them make
decisions (interior)
Proprietorship, Partnership, Corporation Correct answer-3 types of business ownership
Salaries and bonuses to owners, Subchapter S. Election, Limited Liability corp. Correct answer-
Ways to evade double taxation
Subchapter S. Election Correct answer-For smaller corporations, allows them to be taxed as a
proprietorship/partnership
LLC (Limited Liability Corp) Correct answer-Liability protections as if it were a corporation but a
partnership for taxation
Shareholders, Board of Directors, Managers, Employees Correct answer-Organization of a
Corporation
Balance sheet Correct answer-The distribution of captital and where it was obtained
Statement of Cash flow Correct answer-Inflows and outflows of cash
Income Statement Correct answer-Statement that shows if the company was profitable or not
Assets = Liabilities + Owner's equity Correct answer-Balance sheet equation
