ACC 201 EXAM QUESTIONS WITH
CORRECT ANSWERS
Accounting - CORRECT ANSWER✔✔-Information system that identifies, records
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and communicates the economic events
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Income Statement - CORRECT ANSWER✔✔-To show how sucessfully your
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business performed during a certain time (Revenues and Expenses)
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Retained Earnings Statement - CORRECT ANSWER✔✔-How much previous
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income was distributed to owners and how much was retained for future growth
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- Add Net Income. Deduct Dividends.
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Balance Sheet - CORRECT ANSWER✔✔-At a point in time showing what your
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business owns (assets) and what it owes (liabilities&s.e)
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Statement of Cash Flows - CORRECT ANSWER✔✔-Show where your business
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obtained cash during a period of time and how that cash was used
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- Where did cash come from during this period?
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- How was cash used during this period?
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Sole Propietorship - CORRECT ANSWER✔✔-Business owned by one person
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(Barber shops, law offices, farms)
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, Partnership - CORRECT ANSWER✔✔-Owned by 2 or more people associated as
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partners |
(Lawyers, architects, doctors)
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Corporation - CORRECT ANSWER✔✔-Organized as a seperate legal entity owned
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by stockholders
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(coca-cola, microsoft) |
Sarbanes-Oxley Act (SOX) - CORRECT ANSWER✔✔-Passed by Congress to reduce
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unethical coporate behavior and decrease the likelihood of future corporate
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scandals. Relates to public companies.
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Assets - CORRECT ANSWER✔✔-Resources owned by a business
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Example: cash, pp&e, accounts recievable
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Liabilities - CORRECT ANSWER✔✔-Amounts owed to creditors
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Example: note payable, bonds payable
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Stockholder's Equity - CORRECT ANSWER✔✔-The owners claim to assets
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Example: common stock, retained earnings, dividends
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Common Stock - CORRECT ANSWER✔✔-Under SE.
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Results when the company sells new shares of stock
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CORRECT ANSWERS
Accounting - CORRECT ANSWER✔✔-Information system that identifies, records
| | | | | | | |
and communicates the economic events
| | | |
Income Statement - CORRECT ANSWER✔✔-To show how sucessfully your
| | | | | | | | |
business performed during a certain time (Revenues and Expenses)
| | | | | | | |
Retained Earnings Statement - CORRECT ANSWER✔✔-How much previous
| | | | | | | |
income was distributed to owners and how much was retained for future growth
| | | | | | | | | | | |
- Add Net Income. Deduct Dividends.
| | | | |
Balance Sheet - CORRECT ANSWER✔✔-At a point in time showing what your
| | | | | | | | | | | |
business owns (assets) and what it owes (liabilities&s.e)
| | | | | | |
Statement of Cash Flows - CORRECT ANSWER✔✔-Show where your business
| | | | | | | | | |
obtained cash during a period of time and how that cash was used
| | | | | | | | | | | |
- Where did cash come from during this period?
| | | | | | | |
- How was cash used during this period?
| | | | | | |
Sole Propietorship - CORRECT ANSWER✔✔-Business owned by one person
| | | | | | | |
(Barber shops, law offices, farms)
| | | |
, Partnership - CORRECT ANSWER✔✔-Owned by 2 or more people associated as
| | | | | | | | | | |
partners |
(Lawyers, architects, doctors)
| |
Corporation - CORRECT ANSWER✔✔-Organized as a seperate legal entity owned
| | | | | | | | | |
by stockholders
| |
(coca-cola, microsoft) |
Sarbanes-Oxley Act (SOX) - CORRECT ANSWER✔✔-Passed by Congress to reduce
| | | | | | | | | |
unethical coporate behavior and decrease the likelihood of future corporate
| | | | | | | | | |
scandals. Relates to public companies.
| | | |
Assets - CORRECT ANSWER✔✔-Resources owned by a business
| | | | | | | |
Example: cash, pp&e, accounts recievable
| | | |
Liabilities - CORRECT ANSWER✔✔-Amounts owed to creditors
| | | | | | |
Example: note payable, bonds payable
| | | |
Stockholder's Equity - CORRECT ANSWER✔✔-The owners claim to assets
| | | | | | | | |
Example: common stock, retained earnings, dividends
| | | | |
Common Stock - CORRECT ANSWER✔✔-Under SE.
| | | | | |
Results when the company sells new shares of stock
| | | | | | | |
