MGT 8803 Financial Accounting {LATEST
2026 -2027 update} QUESTIONS AND
ANSWERS 100% CORRECT - Georgia
Institute Of Technology
Measures financial position at a point in time. - correct answer Balance Sheet
Accounting Equation.
• The left side of the equation represents ________________ of the company, that is the
________________ are the resources.
• The right side represents sources of the ________________ provided by the
________________ . The ________________ represent the creditor's claims.
• ________________ ________________ represents the sources provided by the
________________ and the owner's claims. - correct answer resources, assets, funding,
creditors, liabilities, owner's equity, owners
,Accounting Equation:
_______________ = ________________ + __________________ - correct answer Assets,
Liabilities, Owner's Equity
Resources owned or rights to receive resources - correct answer assets
Assets
• ________________ (cash, buildings, inventory, equipment)
• ________________ (copyrights, patents, or trademarks)
• ________________ ________________ (e.g. Legal right to receive payment) - correct
answer physical, intangible, legal rights
The order of presentation for assets is determined by: - correct answer liquidity
Assets Valuation:
,• _______________ cost
• _______________ value
• _______________cost
• General price-level _______________ costs - correct answer historical, sales,
replacement, adjusted
Rule that assets are valued at their historical cost - correct answer cost principle
Obligations owed to creditors (money, goods/services) - correct answer liabilities
Current Assets have a _____________________ within 1 year
Current Liabilities have a __________________ within 1 year - correct answer conversion
to cash, due date
Residual interest of owners to assets - correct answer Owner's Equity
, What the company received when selling shares of its stock - correct answer capital
stock
Accumulated earnings less dividends - correct answer retained earnings
Method that starts off with the company's net income from the income statement, and
it makes some adjustments to get to the cash flow from the operating activities -
correct answer indirect
Buying and selling long-term assets (land, building equipment) - correct answer
investing activities
2026 -2027 update} QUESTIONS AND
ANSWERS 100% CORRECT - Georgia
Institute Of Technology
Measures financial position at a point in time. - correct answer Balance Sheet
Accounting Equation.
• The left side of the equation represents ________________ of the company, that is the
________________ are the resources.
• The right side represents sources of the ________________ provided by the
________________ . The ________________ represent the creditor's claims.
• ________________ ________________ represents the sources provided by the
________________ and the owner's claims. - correct answer resources, assets, funding,
creditors, liabilities, owner's equity, owners
,Accounting Equation:
_______________ = ________________ + __________________ - correct answer Assets,
Liabilities, Owner's Equity
Resources owned or rights to receive resources - correct answer assets
Assets
• ________________ (cash, buildings, inventory, equipment)
• ________________ (copyrights, patents, or trademarks)
• ________________ ________________ (e.g. Legal right to receive payment) - correct
answer physical, intangible, legal rights
The order of presentation for assets is determined by: - correct answer liquidity
Assets Valuation:
,• _______________ cost
• _______________ value
• _______________cost
• General price-level _______________ costs - correct answer historical, sales,
replacement, adjusted
Rule that assets are valued at their historical cost - correct answer cost principle
Obligations owed to creditors (money, goods/services) - correct answer liabilities
Current Assets have a _____________________ within 1 year
Current Liabilities have a __________________ within 1 year - correct answer conversion
to cash, due date
Residual interest of owners to assets - correct answer Owner's Equity
, What the company received when selling shares of its stock - correct answer capital
stock
Accumulated earnings less dividends - correct answer retained earnings
Method that starts off with the company's net income from the income statement, and
it makes some adjustments to get to the cash flow from the operating activities -
correct answer indirect
Buying and selling long-term assets (land, building equipment) - correct answer
investing activities
