AGEC 340 EXAM 3 WITH CORRECT
RESPONCES
Accounting Period - CORRECT✅✅the period for which basic financial documents are
prepared
Balance Sheet - CORRECT✅✅a statement on the financial condition of a business on
a specific date; shows the values of the company's assets, liabilities, and owner's equity
Assets - CORRECT✅✅something of value a firm owns or uses
Current Assets - CORRECT✅✅cash, account receivable, and inventory
Fixed Assets - CORRECT✅✅plant, property, and equipment
Liabilities - CORRECT✅✅obligations to pay debt
Owner's Equity - CORRECT✅✅also known as net worth
Accounting Equation - CORRECT✅✅Assets = Liabilities + Owner's Equity
Retained Earnings - CORRECT✅✅profits that are not paid out in dividends but are
reinvested in the firm itself
Income Statement - CORRECT✅✅also known as a profit-and-loss statement;
summarizes the revenue and expenses of a business over a period of time
Gross Profit - CORRECT✅✅income that remains to cover operating expenses
Income Before Taxes - CORRECT✅✅profit/income left before income taxes have
been paid/deducted
Comparative Statement Analysis - CORRECT✅✅the analysis that evaluates two
periods of balance sheets and income statements to examine the changes that could
affect the financial condition of the firm
Net Working Capital - CORRECT✅✅the difference between current assets and
current liabilities
Sources of Net Working Capital - CORRECT✅✅profit, sales of fixed assets, sales of
investments, long-term loans taken out, sale of stock, depreciation
RESPONCES
Accounting Period - CORRECT✅✅the period for which basic financial documents are
prepared
Balance Sheet - CORRECT✅✅a statement on the financial condition of a business on
a specific date; shows the values of the company's assets, liabilities, and owner's equity
Assets - CORRECT✅✅something of value a firm owns or uses
Current Assets - CORRECT✅✅cash, account receivable, and inventory
Fixed Assets - CORRECT✅✅plant, property, and equipment
Liabilities - CORRECT✅✅obligations to pay debt
Owner's Equity - CORRECT✅✅also known as net worth
Accounting Equation - CORRECT✅✅Assets = Liabilities + Owner's Equity
Retained Earnings - CORRECT✅✅profits that are not paid out in dividends but are
reinvested in the firm itself
Income Statement - CORRECT✅✅also known as a profit-and-loss statement;
summarizes the revenue and expenses of a business over a period of time
Gross Profit - CORRECT✅✅income that remains to cover operating expenses
Income Before Taxes - CORRECT✅✅profit/income left before income taxes have
been paid/deducted
Comparative Statement Analysis - CORRECT✅✅the analysis that evaluates two
periods of balance sheets and income statements to examine the changes that could
affect the financial condition of the firm
Net Working Capital - CORRECT✅✅the difference between current assets and
current liabilities
Sources of Net Working Capital - CORRECT✅✅profit, sales of fixed assets, sales of
investments, long-term loans taken out, sale of stock, depreciation
