ACCT 200 Exam 1 Questions With All
Correct & Verified Answers
Three Types of Businesses Correct answer-sole proprietorship, partnership, corporation
Sole Proprietorship Correct answer-business owned by one person
Partnership Correct answer-business owned by two or more people associated as partners
Corporation Correct answer-separate legal entity for which evidence of ownership is provided by
shares of stock
Types of Financial Statements Correct answer-income statement, statement of retained earnings,
balance sheet, statement of cash flows
Beg RE + Net Income - Dividends = End RE Correct answer-Equation for Ending Retained Earnings
4000 Correct answer-If A = 6,000, SE = 2,000, L = ?
3000 Correct answer-If L ↑ 4,000, SE ↓ 1,000, then A?
Financial Accounting Standards Board (US standard-setting body) Correct answer-What does FASB
stand for?
Generally Accepted Accounting Principles (US rules for financial reporting) Correct answer-What
does GAAP stand for?
International Accounting Standards Board (International standard-setting body) Correct answer-
What does IASB stand for?
International Financial Reporting Standards (International rules for financial reporting) Correct
answer-What does IFRS stand for?
Relevance and Faithful Representation Correct answer-Two objectives of financial reporting
Relevance Correct answer-Information makes a difference in a business decision
Faithful Representation Correct answer-Information accurately reports what actually happened
CA, LTA/Investments, PPE, Intangible, CL, LTL, SE Correct answer-7 sections of Balance Sheet in
order
Each transaction affects two or more accounts, equation must stay in balance, debits always equal
credits Correct answer-Rules for Expanded Accounting Equation
3000 Correct answer-If A = 20,000, L = 7,000, CS = 5,000, Beg. R/E = 1,000, Rev = 12,000, Divs =
2,000, then what are Expenses?
Side where increases in accounts are recorded Correct answer-Normal Balance to Accounts
Correct & Verified Answers
Three Types of Businesses Correct answer-sole proprietorship, partnership, corporation
Sole Proprietorship Correct answer-business owned by one person
Partnership Correct answer-business owned by two or more people associated as partners
Corporation Correct answer-separate legal entity for which evidence of ownership is provided by
shares of stock
Types of Financial Statements Correct answer-income statement, statement of retained earnings,
balance sheet, statement of cash flows
Beg RE + Net Income - Dividends = End RE Correct answer-Equation for Ending Retained Earnings
4000 Correct answer-If A = 6,000, SE = 2,000, L = ?
3000 Correct answer-If L ↑ 4,000, SE ↓ 1,000, then A?
Financial Accounting Standards Board (US standard-setting body) Correct answer-What does FASB
stand for?
Generally Accepted Accounting Principles (US rules for financial reporting) Correct answer-What
does GAAP stand for?
International Accounting Standards Board (International standard-setting body) Correct answer-
What does IASB stand for?
International Financial Reporting Standards (International rules for financial reporting) Correct
answer-What does IFRS stand for?
Relevance and Faithful Representation Correct answer-Two objectives of financial reporting
Relevance Correct answer-Information makes a difference in a business decision
Faithful Representation Correct answer-Information accurately reports what actually happened
CA, LTA/Investments, PPE, Intangible, CL, LTL, SE Correct answer-7 sections of Balance Sheet in
order
Each transaction affects two or more accounts, equation must stay in balance, debits always equal
credits Correct answer-Rules for Expanded Accounting Equation
3000 Correct answer-If A = 20,000, L = 7,000, CS = 5,000, Beg. R/E = 1,000, Rev = 12,000, Divs =
2,000, then what are Expenses?
Side where increases in accounts are recorded Correct answer-Normal Balance to Accounts
