ACG 201 Final Exam with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
Characteristics of a Corporation ✔Correct Answer--separate legal entity
-the owners of the corporation are the stockholders
-the dominant organizational type
retained earnings calculation ✔Correct Answer-beginning period retained earnings
+Net Income
-Cash Dividends
=Retained Earnings
Accounting Equation ✔Correct Answer-assets = liabilities + stockholder's equity
components of financial statements ✔Correct Answer--Income Statement
-Statement of Stockholder's Equity
-Balance Sheet
-Statement of Cash Flows
Income Statement ✔Correct Answer-(revenue, expenses, and net income)
-change in common stock and change in retained earnings
-reports revenues and expenses
-net income results when revenues exceed expenses
-period of time
statement of stockholder's equity ✔Correct Answer--reports the events causing an increase
or decrease in SE in a period of time
-2 parts: contributed capital & earned capital (retained earnings)
-period of time
contributed capital ✔Correct Answer-money contributed by the stockholders when they buy
stock
earned capital ✔Correct Answer--retained earnings
-money earned by the company and used to reinvest in the business
balance sheet ✔Correct Answer--reported at a point in time
-lists assets, liabilities, and stockholder's equity
statement of cash flows ✔Correct Answer--a company's cash inflows and outflows in a period
of time
-grouped by investing, operating, and financing
, -period of time
standards-setting bodies ✔Correct Answer--generally accepted accounting principle (GAAP)
-US Securities and Exchange Commission (SEC)
-Financial Accounting Standards Board (FASB)
Generally Accepted Accounting Principles (GAAP) ✔Correct Answer--accounting principles
-made by FASB
U.S. Securities and Exchange Commission (SEC) ✔Correct Answer-regulates sale of stock and
bonds
Financial Accounting Standards Boards (FASB) ✔Correct Answer--reports to SEC
-establishes GAAP
Materiality ✔Correct Answer--don't put on the financial statements if it doesn't have a huge
impact. EX: Hammer
-threshold that marks the line of how close numbers are to the actual cost
Cost versus Market Value ✔Correct Answer-put it on the books at what it costs not market
value
accounting cycle ✔Correct Answer-(ARARC)
-Analyze: analyze transactions from source documents
-Record: journalize transactions, prepare unadjusted trial balance, credit and debit everything
-Adjust: journalize adjusting entries, prepare adjusted trial balance
-Report: prepare financial statements
-Close: Journalize closing entries, prepare post-closing trial balance
record transactions ✔Correct Answer-journal entries
Deferral ✔Correct Answer--don't pay it now but pay it later and has interest
-unearned revenue in a prepaid expense
accrual basis of accounting ✔Correct Answer-reporting income when it is earned and
expenses when they are incurred
types of adjustments ✔Correct Answer-Prepaid Expenses, Unearned Revenue, Accrued
Expenses, Accrued Revenue
prepaid expenses ✔Correct Answer-allocating previously recorded assets to expenses to
reflect the proper expenses incurred during that period
Answers |Actual Complete Exam |Already Graded A+
Characteristics of a Corporation ✔Correct Answer--separate legal entity
-the owners of the corporation are the stockholders
-the dominant organizational type
retained earnings calculation ✔Correct Answer-beginning period retained earnings
+Net Income
-Cash Dividends
=Retained Earnings
Accounting Equation ✔Correct Answer-assets = liabilities + stockholder's equity
components of financial statements ✔Correct Answer--Income Statement
-Statement of Stockholder's Equity
-Balance Sheet
-Statement of Cash Flows
Income Statement ✔Correct Answer-(revenue, expenses, and net income)
-change in common stock and change in retained earnings
-reports revenues and expenses
-net income results when revenues exceed expenses
-period of time
statement of stockholder's equity ✔Correct Answer--reports the events causing an increase
or decrease in SE in a period of time
-2 parts: contributed capital & earned capital (retained earnings)
-period of time
contributed capital ✔Correct Answer-money contributed by the stockholders when they buy
stock
earned capital ✔Correct Answer--retained earnings
-money earned by the company and used to reinvest in the business
balance sheet ✔Correct Answer--reported at a point in time
-lists assets, liabilities, and stockholder's equity
statement of cash flows ✔Correct Answer--a company's cash inflows and outflows in a period
of time
-grouped by investing, operating, and financing
, -period of time
standards-setting bodies ✔Correct Answer--generally accepted accounting principle (GAAP)
-US Securities and Exchange Commission (SEC)
-Financial Accounting Standards Board (FASB)
Generally Accepted Accounting Principles (GAAP) ✔Correct Answer--accounting principles
-made by FASB
U.S. Securities and Exchange Commission (SEC) ✔Correct Answer-regulates sale of stock and
bonds
Financial Accounting Standards Boards (FASB) ✔Correct Answer--reports to SEC
-establishes GAAP
Materiality ✔Correct Answer--don't put on the financial statements if it doesn't have a huge
impact. EX: Hammer
-threshold that marks the line of how close numbers are to the actual cost
Cost versus Market Value ✔Correct Answer-put it on the books at what it costs not market
value
accounting cycle ✔Correct Answer-(ARARC)
-Analyze: analyze transactions from source documents
-Record: journalize transactions, prepare unadjusted trial balance, credit and debit everything
-Adjust: journalize adjusting entries, prepare adjusted trial balance
-Report: prepare financial statements
-Close: Journalize closing entries, prepare post-closing trial balance
record transactions ✔Correct Answer-journal entries
Deferral ✔Correct Answer--don't pay it now but pay it later and has interest
-unearned revenue in a prepaid expense
accrual basis of accounting ✔Correct Answer-reporting income when it is earned and
expenses when they are incurred
types of adjustments ✔Correct Answer-Prepaid Expenses, Unearned Revenue, Accrued
Expenses, Accrued Revenue
prepaid expenses ✔Correct Answer-allocating previously recorded assets to expenses to
reflect the proper expenses incurred during that period
