ACG 2021 Exam 1 with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Balance Sheet ✔Correct Answer-a financial statement that reports the assets and claims to
those assets at a specific point in time
Basic accounting equation ✔Correct Answer-Assets= Liabilities + Equity
Common Stock ✔Correct Answer-the total amount paid in by stockholders for the shares they
purchase
Corporation ✔Correct Answer-a business organized as a separate legal entity having
ownership divided into transferable shares of stock
Dividends ✔Correct Answer-payments of cash from a corporation to its stockholders
Expenses ✔Correct Answer-the cost of assets consumed or services used in the process of
generating revenues
income statement ✔Correct Answer-a financial statement that presents the revenues and
expenses and resulting net income or net loss of a company for a specific period of time
liabilities ✔Correct Answer-the debts and obligations of a business.
Liabilities represent the amounts owed to creditors
net income ✔Correct Answer-the amount by which revenues exceed expenses
net loss ✔Correct Answer-the amount by which expenses exceed revenues
partnership ✔Correct Answer-a business owned by two or more persons associated as
partners
retained earnings ✔Correct Answer-the amount of net income retained in the corporation
retained earnings statement ✔Correct Answer-a financial statement that summarizes the
amounts and causes of changes in retained earnings for a specific period of time
revenue ✔Correct Answer-the increase in assets that result from the sale of a product or
service in the normal course of business
sole proprietorship ✔Correct Answer-a business owned by one person
, statement of cash flows ✔Correct Answer-a financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific period of
time
stockholder's equity ✔Correct Answer-the owners' claim on total assets
Classified Balance sheet ✔Correct Answer-a balance sheet that contains a number of
standard classifications and sections
Conservatism ✔Correct Answer-the approach of choosing an accounting method, when
alternatives exist, that will least likely overstate assets and net income
consistency ✔Correct Answer-use of the same accounting principles and methods from year
to year within a company
cost principle ✔Correct Answer-an accounting principle that states that companies should
record assets at their costs
current assets ✔Correct Answer-cash and other resources that companies reasonably expect
to convert to cash or use up within one year or the operating cycle, whichever is longer
current liabilities ✔Correct Answer-obligations that a company reasonably expects to pay
within the next year or operating cycle, whichever is longer
Financial Accounting Standards Board (FASB) ✔Correct Answer-the primary accounting
standard-setting body in the US
free cash flow ✔Correct Answer-cash remaining from operating activities after adjusting for
capital expenditures and dividends paid
full disclosure principle ✔Correct Answer-accounting principle that dictates that companies
disclose circumstances and events that make a difference to financial statement users
Generally accepted accounting principles (GAAP) ✔Correct Answer-a set of rules and
practices, having substantial authoritative support, that the accounting profession recognizes as
a general guide for financial reporting purposes
intangible assets ✔Correct Answer-assets that do not have physical substance
Ex: patents, goodwill
International accounting standards board (IASB) ✔Correct Answer-an accounting standard-
setting body that issues standards adopted by many countries outside of the US
Answers |Latest Version |Already Graded A+
Balance Sheet ✔Correct Answer-a financial statement that reports the assets and claims to
those assets at a specific point in time
Basic accounting equation ✔Correct Answer-Assets= Liabilities + Equity
Common Stock ✔Correct Answer-the total amount paid in by stockholders for the shares they
purchase
Corporation ✔Correct Answer-a business organized as a separate legal entity having
ownership divided into transferable shares of stock
Dividends ✔Correct Answer-payments of cash from a corporation to its stockholders
Expenses ✔Correct Answer-the cost of assets consumed or services used in the process of
generating revenues
income statement ✔Correct Answer-a financial statement that presents the revenues and
expenses and resulting net income or net loss of a company for a specific period of time
liabilities ✔Correct Answer-the debts and obligations of a business.
Liabilities represent the amounts owed to creditors
net income ✔Correct Answer-the amount by which revenues exceed expenses
net loss ✔Correct Answer-the amount by which expenses exceed revenues
partnership ✔Correct Answer-a business owned by two or more persons associated as
partners
retained earnings ✔Correct Answer-the amount of net income retained in the corporation
retained earnings statement ✔Correct Answer-a financial statement that summarizes the
amounts and causes of changes in retained earnings for a specific period of time
revenue ✔Correct Answer-the increase in assets that result from the sale of a product or
service in the normal course of business
sole proprietorship ✔Correct Answer-a business owned by one person
, statement of cash flows ✔Correct Answer-a financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific period of
time
stockholder's equity ✔Correct Answer-the owners' claim on total assets
Classified Balance sheet ✔Correct Answer-a balance sheet that contains a number of
standard classifications and sections
Conservatism ✔Correct Answer-the approach of choosing an accounting method, when
alternatives exist, that will least likely overstate assets and net income
consistency ✔Correct Answer-use of the same accounting principles and methods from year
to year within a company
cost principle ✔Correct Answer-an accounting principle that states that companies should
record assets at their costs
current assets ✔Correct Answer-cash and other resources that companies reasonably expect
to convert to cash or use up within one year or the operating cycle, whichever is longer
current liabilities ✔Correct Answer-obligations that a company reasonably expects to pay
within the next year or operating cycle, whichever is longer
Financial Accounting Standards Board (FASB) ✔Correct Answer-the primary accounting
standard-setting body in the US
free cash flow ✔Correct Answer-cash remaining from operating activities after adjusting for
capital expenditures and dividends paid
full disclosure principle ✔Correct Answer-accounting principle that dictates that companies
disclose circumstances and events that make a difference to financial statement users
Generally accepted accounting principles (GAAP) ✔Correct Answer-a set of rules and
practices, having substantial authoritative support, that the accounting profession recognizes as
a general guide for financial reporting purposes
intangible assets ✔Correct Answer-assets that do not have physical substance
Ex: patents, goodwill
International accounting standards board (IASB) ✔Correct Answer-an accounting standard-
setting body that issues standards adopted by many countries outside of the US
