UCF ACG 3173- Final Exam Course
Review Questions and All Correct
Answers 2025-2026 Updated.
The Content in the course review videos cover which exams? - Answer Exams 1-3; stated in
first video.
What form do firms use to report to the FCC annually? - Answer 10-K
What form do firms use to report to the FCC quarterly? - Answer 10-Q
What is the similarities and difference between 10-K and 10-Q? - Answer Both are forms that
are reported to FCC ( Financial Statements):
~ 10-K is annual report
~10-Q is quarterly report
There are ____ main financial statements, with potentially ___ more. - Answer -3()
-(2)
What are the 3 main statements, what are the 2 potential statements. - Answer Main
Statements:
1. Income Statement
2. Balance Sheet
3. Statement of Cash Flow
Potential 4th and 5th statements:
4. Statement of Stock Holders Equity
5.Statement of Other Comprehensive Income (Loss)
Whether or not the last 2 statements are included is based off of... - Answer How
sophisticated the financial statements are.
Are the first 3 mandatory or optional? - Answer The first 3 are statements everyone is going
to have.
Audit Report - Answer Looking for an Unqualified Opinion as opposed to a Qualified Opinion.
, What is the purpose of the Audit Function? - Answer The purpose of the audit is to
determine whether or not the financial statement are prepared in accordance with GAAP.
What is GAAP - Answer Generally Accepted Accounting Principles
Why is it critically important in the economy that the audit function determines whether or not
a firms financial statements are prepared in accordance with GAAP? - Answer Without this
3rd party verification, the financial statements are nothing more than numbers on a piece of
paper." And that is about all they are worth"- Ray Sturm.
When does the financial statements become something we can rely on? - Answer When the
auditor (someone else who is independent from this firm) says," Yeah, they are prepared in all
MATERIAL RESPECTS in accordance with GAAP.
Biggest scandal in the world... - Answer Largest auditing firm in the world looked into Enron
& Wordcom and the financial statements turned out to be bogus. The auditing firm missed it.
( created uncertainty and loss of trust in the system)
What did the Enron scandal lead to? - Answer Sarbanes Oxley
Auditing Process is critical to the economy because? - Answer Without this, less exchanges
will take place.
-Therefore, the economy will suffer.
What basis of accounting are public companies required to use? - Answer Accrual, as
opposed to Cash.
What is the difference in Accrual and Cash accounting? - Answer The difference is when
revenues and expenses are recorded.
Under the Accrual basis of accounting... - Answer -Revenues are recorded when they are
EARNED regardless of when they are RECEIVED
-Expenses are recorded when they are INCURRED regardless of when they are PAID
Under the Cash basis of accounting... - Answer -Revenues are recorded when they are
RECEIVED
Expenses are recorded when they are PAID
Review Questions and All Correct
Answers 2025-2026 Updated.
The Content in the course review videos cover which exams? - Answer Exams 1-3; stated in
first video.
What form do firms use to report to the FCC annually? - Answer 10-K
What form do firms use to report to the FCC quarterly? - Answer 10-Q
What is the similarities and difference between 10-K and 10-Q? - Answer Both are forms that
are reported to FCC ( Financial Statements):
~ 10-K is annual report
~10-Q is quarterly report
There are ____ main financial statements, with potentially ___ more. - Answer -3()
-(2)
What are the 3 main statements, what are the 2 potential statements. - Answer Main
Statements:
1. Income Statement
2. Balance Sheet
3. Statement of Cash Flow
Potential 4th and 5th statements:
4. Statement of Stock Holders Equity
5.Statement of Other Comprehensive Income (Loss)
Whether or not the last 2 statements are included is based off of... - Answer How
sophisticated the financial statements are.
Are the first 3 mandatory or optional? - Answer The first 3 are statements everyone is going
to have.
Audit Report - Answer Looking for an Unqualified Opinion as opposed to a Qualified Opinion.
, What is the purpose of the Audit Function? - Answer The purpose of the audit is to
determine whether or not the financial statement are prepared in accordance with GAAP.
What is GAAP - Answer Generally Accepted Accounting Principles
Why is it critically important in the economy that the audit function determines whether or not
a firms financial statements are prepared in accordance with GAAP? - Answer Without this
3rd party verification, the financial statements are nothing more than numbers on a piece of
paper." And that is about all they are worth"- Ray Sturm.
When does the financial statements become something we can rely on? - Answer When the
auditor (someone else who is independent from this firm) says," Yeah, they are prepared in all
MATERIAL RESPECTS in accordance with GAAP.
Biggest scandal in the world... - Answer Largest auditing firm in the world looked into Enron
& Wordcom and the financial statements turned out to be bogus. The auditing firm missed it.
( created uncertainty and loss of trust in the system)
What did the Enron scandal lead to? - Answer Sarbanes Oxley
Auditing Process is critical to the economy because? - Answer Without this, less exchanges
will take place.
-Therefore, the economy will suffer.
What basis of accounting are public companies required to use? - Answer Accrual, as
opposed to Cash.
What is the difference in Accrual and Cash accounting? - Answer The difference is when
revenues and expenses are recorded.
Under the Accrual basis of accounting... - Answer -Revenues are recorded when they are
EARNED regardless of when they are RECEIVED
-Expenses are recorded when they are INCURRED regardless of when they are PAID
Under the Cash basis of accounting... - Answer -Revenues are recorded when they are
RECEIVED
Expenses are recorded when they are PAID
