ACC 201-Final Exam-MSU Questions
With Correct Answers
Four Financial Statements - CORRECT ANSWER✔✔-income statement, retained
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earnings statement, balance sheet, statement of cash flows
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Internal users of accounting information - CORRECT ANSWER✔✔-managers who
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plan, organize, and run a business
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external users of accounting information - CORRECT ANSWER✔✔-Investors,
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creditors, employees, labor unions, customers, suppliers, government regulatory
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agencies, financial intermediaries
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Net Income vs Net Loss - CORRECT ANSWER✔✔-If your revenues are greater than
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expenses, you have net income. If revenues are less than expenses, you have a
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net loss.
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Assets - CORRECT ANSWER✔✔-money and other valuables belonging to an
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individual or business | |
Liabilities - CORRECT ANSWER✔✔-Amounts owed to creditors
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Stockholder's Equity - CORRECT ANSWER✔✔-The owners' claim to assets.
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, Accounting Equation - CORRECT ANSWER✔✔-Assets = Liabilities + Stockholder's
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Equity
Working Capital - CORRECT ANSWER✔✔-current assets - current liabilities
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Current ratio - CORRECT ANSWER✔✔-current assets divided by current liabilities
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earnings per share - CORRECT ANSWER✔✔-net income or profit divided by the
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number of stock shares outstanding
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T Accounts - CORRECT ANSWER✔✔-An accounting device used to analyze
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transactions
accrual accounting - CORRECT ANSWER✔✔-recording in each fiscal period
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applicable expenses, whether paid or not, and income earned, whether collected
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or not.
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Contra accounts - CORRECT ANSWER✔✔-An account offset against another
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account.
Gross Profit - CORRECT ANSWER✔✔-net sales - cost of goods sold
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net income - CORRECT ANSWER✔✔-Revenues - Expenses
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With Correct Answers
Four Financial Statements - CORRECT ANSWER✔✔-income statement, retained
| | | | | | | |
earnings statement, balance sheet, statement of cash flows
| | | | | | |
Internal users of accounting information - CORRECT ANSWER✔✔-managers who
| | | | | | | | |
plan, organize, and run a business
| | | | |
external users of accounting information - CORRECT ANSWER✔✔-Investors,
| | | | | | | |
creditors, employees, labor unions, customers, suppliers, government regulatory
| | | | | | | |
agencies, financial intermediaries
| |
Net Income vs Net Loss - CORRECT ANSWER✔✔-If your revenues are greater than
| | | | | | | | | | | |
expenses, you have net income. If revenues are less than expenses, you have a
| | | | | | | | | | | | | | |
net loss.
|
Assets - CORRECT ANSWER✔✔-money and other valuables belonging to an
| | | | | | | | | |
individual or business | |
Liabilities - CORRECT ANSWER✔✔-Amounts owed to creditors
| | | | | |
Stockholder's Equity - CORRECT ANSWER✔✔-The owners' claim to assets.
| | | | | | | |
, Accounting Equation - CORRECT ANSWER✔✔-Assets = Liabilities + Stockholder's
| | | | | | | | |
Equity
Working Capital - CORRECT ANSWER✔✔-current assets - current liabilities
| | | | | | | |
Current ratio - CORRECT ANSWER✔✔-current assets divided by current liabilities
| | | | | | | | |
earnings per share - CORRECT ANSWER✔✔-net income or profit divided by the
| | | | | | | | | | | |
number of stock shares outstanding
| | | |
T Accounts - CORRECT ANSWER✔✔-An accounting device used to analyze
| | | | | | | | | |
transactions
accrual accounting - CORRECT ANSWER✔✔-recording in each fiscal period
| | | | | | | | |
applicable expenses, whether paid or not, and income earned, whether collected
| | | | | | | | | | |
or not.
|
Contra accounts - CORRECT ANSWER✔✔-An account offset against another
| | | | | | | | |
account.
Gross Profit - CORRECT ANSWER✔✔-net sales - cost of goods sold
| | | | | | | | | |
net income - CORRECT ANSWER✔✔-Revenues - Expenses
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