BUS-A 100 FINAL COMPLETE EXAM QUESTIONS AND
CORRECT ANSWERS LATEST 2026
Accounting - ANSWER Recording of company transactions, creation of
summary reports, and analyzing financial information.
Financial statements are ANSWER reports that are impartially and objectively
created using accounting procedures.
Financial accounting - ANSWER Records a reports available publicly.
ANSWER Transactions that generate expendable funds (debt and equity) are
considered financing activities. category related to the cash flow statement.
Examples: Financing activities - ANSWER Borrowing or repaying loans,
issuing stock, paying dividends.
Investing activities - ANSWER Transactions that the company employs to
invest in assets that will be employed in business operations. category related to
the cash flow statement.
Examples of investing activities include buying and selling long-term or fixed
assets.
Operating operations - ANSWER Unclassified transactions that are involved
in the daily functions of the firm. category related to the cash flow statement.
Examples: Operating activities - ANSWER Selling goods/services, purchasing
inventory, paying interest, paying suppliers and staff.
Equity: ANSWER Claims of ownership over a company (stockholders,
shareholders, equity investors). Also a measure of the portion of a company's
assets that are owned wholly.
, Debt - ANSWER Borrowing money from investors or banks (not owners).
Creditors - ANSWER People or groups that loan money out (debt investors).
Principal - ANSWER The principal amount of money borrowed, excluding
interest.
Loan contract - ANSWER The particular terms/requirements of a loan.
Maturity date - ANSWER Date by which a loan is to be repaid in full
(principal and interest).
In the event that a loan is not returned, assets may be confiscated as collateral.
Default - ANSWER Occurs when a borrower fails to pay back a debt.
Securities and Exchange Commission (SEC) - ANSWER U.S. government
organization (1934), aim to maintain fair and accurate capital markets for public
firms. Provide rules for the creation of financial statements.
"Publicly held" corporation - ANSWER Corporation that trades their stock on
an exchange.
Form 10K - ANSWER Annual audited report that publicly traded firms must
file with the SEC.
Form 10Q - ANSWER Quarterly unaudited report that publicly traded firms
must file with the SEC.
Four Financial Statements - ANSWER Income Statement, Statement of
Retained Earnings, Balance Sheet, Statement of Cash Flows (also: notes to the
financial statements).
Independent auditor/External auditor - ANSWER Licensed certified public
accountant engaged to audit a firm's financial statements, not an employee of
the audited company. Cannot have personal relationships to the company they
are auditing.
Public accounting firms - ANSWER Provide services (audits) to other
companies.
Audit - ANSWER Auditors review a company's financial statements and
provide an opinion. Establishing the reliability of audited financial accounts is
CORRECT ANSWERS LATEST 2026
Accounting - ANSWER Recording of company transactions, creation of
summary reports, and analyzing financial information.
Financial statements are ANSWER reports that are impartially and objectively
created using accounting procedures.
Financial accounting - ANSWER Records a reports available publicly.
ANSWER Transactions that generate expendable funds (debt and equity) are
considered financing activities. category related to the cash flow statement.
Examples: Financing activities - ANSWER Borrowing or repaying loans,
issuing stock, paying dividends.
Investing activities - ANSWER Transactions that the company employs to
invest in assets that will be employed in business operations. category related to
the cash flow statement.
Examples of investing activities include buying and selling long-term or fixed
assets.
Operating operations - ANSWER Unclassified transactions that are involved
in the daily functions of the firm. category related to the cash flow statement.
Examples: Operating activities - ANSWER Selling goods/services, purchasing
inventory, paying interest, paying suppliers and staff.
Equity: ANSWER Claims of ownership over a company (stockholders,
shareholders, equity investors). Also a measure of the portion of a company's
assets that are owned wholly.
, Debt - ANSWER Borrowing money from investors or banks (not owners).
Creditors - ANSWER People or groups that loan money out (debt investors).
Principal - ANSWER The principal amount of money borrowed, excluding
interest.
Loan contract - ANSWER The particular terms/requirements of a loan.
Maturity date - ANSWER Date by which a loan is to be repaid in full
(principal and interest).
In the event that a loan is not returned, assets may be confiscated as collateral.
Default - ANSWER Occurs when a borrower fails to pay back a debt.
Securities and Exchange Commission (SEC) - ANSWER U.S. government
organization (1934), aim to maintain fair and accurate capital markets for public
firms. Provide rules for the creation of financial statements.
"Publicly held" corporation - ANSWER Corporation that trades their stock on
an exchange.
Form 10K - ANSWER Annual audited report that publicly traded firms must
file with the SEC.
Form 10Q - ANSWER Quarterly unaudited report that publicly traded firms
must file with the SEC.
Four Financial Statements - ANSWER Income Statement, Statement of
Retained Earnings, Balance Sheet, Statement of Cash Flows (also: notes to the
financial statements).
Independent auditor/External auditor - ANSWER Licensed certified public
accountant engaged to audit a firm's financial statements, not an employee of
the audited company. Cannot have personal relationships to the company they
are auditing.
Public accounting firms - ANSWER Provide services (audits) to other
companies.
Audit - ANSWER Auditors review a company's financial statements and
provide an opinion. Establishing the reliability of audited financial accounts is
