MAJOR FIELD TEST BUSINESS STUDY SET
ACTUAL 2026 QUESTIONS AND 100% CORRECT
ANSWERS
Save
Terms in this set (197)
Balance Sheet Attempts to describe the financial condition of
the firm at a point in time.
Includes: Assets, Liabilities, & Equity - "net assets"
what remains after deducting liabilities from
assets..
Income Statement Presents the results of the operations of an entity
over a peroid of time.
Includes: Revenues, Expenses, Income, Gains &
Losses
Statement of Equity or Statement of Bridges the gap between the income statement
Retained Earnings (Capital) and the balance sheet.
Arrangement depends on type of organization:
Proprietorship: Statement of Owners Equity
Partnership: Statement of Partners Equity
Corporation: Statement of Stockholders Equity
In addition, it contains: Investments by Owners
and Distribution to owners
, Statement of Cash Flows Provides information about a company's cash
receipts and cash payments during a specific
period of time.
Includes all 10 elements of financial statements:
assets, liabilities, equity, net income, income,
gains, losses, Statement of 'X' Equity, Investments
by Owners, Distributions to Owners.
Cash Basis Accounting Revenue is recognized in the accounting period
in which the associated cash is received and
Expenses are recognized in the accounting
period that the cash is paid.
Accrual Basis Accounting Revenue is recognized in the accounting period
in which the revenue is earned, regardless of
when the associated revenue is received.
(Recorded when the sale is made, not when it is
paid for.)
Depreciation A method of allocating the cost of a tangible
asset over its useful life. Businesses depreciate
long-term assets for both tax and accounting
purposes.
Straight-Line Deprecation Straight Line Depreciation - (estimated
value/useful life)
Equal amounts of depreciation expense are
recorded in each period of the useful life of the
asset, if not disposed of prior to the end of
estimated useful life.
The value is divided among estimated life of item.
Double Declining Balance Double Declining Balance
Depreciation An "accelerated" depreciation method (more
expense is recorded in the early periods of
useful life and less in the later periods.)
ACTUAL 2026 QUESTIONS AND 100% CORRECT
ANSWERS
Save
Terms in this set (197)
Balance Sheet Attempts to describe the financial condition of
the firm at a point in time.
Includes: Assets, Liabilities, & Equity - "net assets"
what remains after deducting liabilities from
assets..
Income Statement Presents the results of the operations of an entity
over a peroid of time.
Includes: Revenues, Expenses, Income, Gains &
Losses
Statement of Equity or Statement of Bridges the gap between the income statement
Retained Earnings (Capital) and the balance sheet.
Arrangement depends on type of organization:
Proprietorship: Statement of Owners Equity
Partnership: Statement of Partners Equity
Corporation: Statement of Stockholders Equity
In addition, it contains: Investments by Owners
and Distribution to owners
, Statement of Cash Flows Provides information about a company's cash
receipts and cash payments during a specific
period of time.
Includes all 10 elements of financial statements:
assets, liabilities, equity, net income, income,
gains, losses, Statement of 'X' Equity, Investments
by Owners, Distributions to Owners.
Cash Basis Accounting Revenue is recognized in the accounting period
in which the associated cash is received and
Expenses are recognized in the accounting
period that the cash is paid.
Accrual Basis Accounting Revenue is recognized in the accounting period
in which the revenue is earned, regardless of
when the associated revenue is received.
(Recorded when the sale is made, not when it is
paid for.)
Depreciation A method of allocating the cost of a tangible
asset over its useful life. Businesses depreciate
long-term assets for both tax and accounting
purposes.
Straight-Line Deprecation Straight Line Depreciation - (estimated
value/useful life)
Equal amounts of depreciation expense are
recorded in each period of the useful life of the
asset, if not disposed of prior to the end of
estimated useful life.
The value is divided among estimated life of item.
Double Declining Balance Double Declining Balance
Depreciation An "accelerated" depreciation method (more
expense is recorded in the early periods of
useful life and less in the later periods.)
