C213 ACCOUNTING FOR DECISION MAKERS
(VAC2 TERMS) ACTUAL EXAM QUESTIONS
WITH VERIFIED ANSWERS
Accrual Accounting
The process that accountants use in adjusting raw transaction data into
refined measures of a firm's economic performance.
Accumulated Depreciation
Reflects the wear and tear, or depreciation, of these items since they
were originally purchased.
Accumulated Other Comprehensive Income
The grouped together and reported changes which companies
experience increases and decreases in equity each year because of the
movement of market prices or exchange rates
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,Activity-based Costing (ABC)
A method of attributing overhead costs to products based on
measurable factors that relate to activities that create overhead costs.
Additional Paid-in Capital
Invested by stockholders that exceeds the par value of the issued
shares.
"Other Assets"
Long-term assets that are not suitable for reporting under any of the
previous classifications
Accounting
A system of providing "quantitative information, primarily financial
in nature, about economic entities that is intended to be useful in
making economic decisions."
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,Accounting Equation
Assets = Liabilities + Owners' Equity
Accounts Payable
The flip side of accounts receivable—when one company sells on
credit, creating for itself an account receivable, the company on the
other side of the transaction is buying on credit, creating an account
payable.
Accounts Receivable
Amounts owed to a business by its credit customers and are usually
collected in cash within 10 to 60 days.
American Institute of Certified Public Accountants (AICPA)
The professional organization of certified public accountants in the
United States.
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, Asset
Probable future economic benefit obtained or controlled by a
particular entity as a result of past transactions or events.
Asset Mix
The proportion of total assets in each asset category, is determined to
a large degree by the industry in which the company operates.
Asset Turnover
Sales divided by assets and is interpreted as the number of dollars in
sales generated by each dollar of assets.
Assets
Assets are the firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a
particular entity as a result of past transactions or events
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(VAC2 TERMS) ACTUAL EXAM QUESTIONS
WITH VERIFIED ANSWERS
Accrual Accounting
The process that accountants use in adjusting raw transaction data into
refined measures of a firm's economic performance.
Accumulated Depreciation
Reflects the wear and tear, or depreciation, of these items since they
were originally purchased.
Accumulated Other Comprehensive Income
The grouped together and reported changes which companies
experience increases and decreases in equity each year because of the
movement of market prices or exchange rates
Page 1 of 53
,Activity-based Costing (ABC)
A method of attributing overhead costs to products based on
measurable factors that relate to activities that create overhead costs.
Additional Paid-in Capital
Invested by stockholders that exceeds the par value of the issued
shares.
"Other Assets"
Long-term assets that are not suitable for reporting under any of the
previous classifications
Accounting
A system of providing "quantitative information, primarily financial
in nature, about economic entities that is intended to be useful in
making economic decisions."
Page 2 of 53
,Accounting Equation
Assets = Liabilities + Owners' Equity
Accounts Payable
The flip side of accounts receivable—when one company sells on
credit, creating for itself an account receivable, the company on the
other side of the transaction is buying on credit, creating an account
payable.
Accounts Receivable
Amounts owed to a business by its credit customers and are usually
collected in cash within 10 to 60 days.
American Institute of Certified Public Accountants (AICPA)
The professional organization of certified public accountants in the
United States.
Page 3 of 53
, Asset
Probable future economic benefit obtained or controlled by a
particular entity as a result of past transactions or events.
Asset Mix
The proportion of total assets in each asset category, is determined to
a large degree by the industry in which the company operates.
Asset Turnover
Sales divided by assets and is interpreted as the number of dollars in
sales generated by each dollar of assets.
Assets
Assets are the firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a
particular entity as a result of past transactions or events
Page 4 of 53
