ACCT 201A Final Exam Review CSUF (Hoffman) –
Questions & Correct Answers
Definition that best describes financial accounting? Right Ans - Measuring a
company's business activities and communicating those measurements to
external parties.
The primary function(s) of financial accounting is(are) to: Right Ans -
Measure business activities of a company and communicate information about
business activities to outside users.
Financial accounting provides information primarily to Right Ans -
Investors and creditors
What represents a resource of the company? Right Ans - An asset
What represents an obligation of the company? Right Ans - A liability
What describes the cost of selling to customers? Right Ans - Expenses
fundamental accounting equation? Right Ans - Assets = Liabilities +
Owner's Equity
Expenses represent: Right Ans - Costs of providing products or services to
customers.
Amounts owed to creditors are reported as Right Ans - liabilities
In which financial statement does a company report its revenues? Right
Ans - Income Statement
The financial statement that shows the financial position of a company at a
specific point in time is called the Right Ans - Balance Sheet
Which financial statement shows a company's revenues and expenses?
Right Ans - Income Statement
, The balance in retained earnings represents: Right Ans - The amount of
income earned over the company's life minus the dividends paid to
shareholders over the company's life.
Who ultimately is responsible for properly applying GAAP? The company's:
Right Ans - Management
A company reports the following in its income statement: Total revenues of
$500,000 and total expenses of $300,000. So, Right Ans - Net income
equals $200,000.
A company reports the following in its balance sheet: Total assets of $800,000
and total liabilities of $700,000. Which of the following is true? Right Ans -
Total stockholders' equity equals $100,000.
Which financial statement shows that a company's resources equal claims to
those resources? Right Ans - Balance Sheet
Which financial statement conveys a company's ability to generate profits in
the current period? Right Ans - Income Statement
Sales of products or services are referred to as Right Ans - revenues
Financial accounting serves which primary function(s)?
1)Measures business activities.
2)Communicates business activities to interested parties.
3)Makes business decisions on behalf of interested parties. Right Ans - 1
and 2
Transactions are recorded using debits and credits in a Right Ans - Journal
After transactions are recorded in the journal, they are posted to the: Right
Ans - General Ledger
All transactions related to a particular item over a period of time are
summarized in a(n): Right Ans - Account
A list of all account names used to record transactions of a company is
referred to as a: Right Ans - Chart of Accounts
Questions & Correct Answers
Definition that best describes financial accounting? Right Ans - Measuring a
company's business activities and communicating those measurements to
external parties.
The primary function(s) of financial accounting is(are) to: Right Ans -
Measure business activities of a company and communicate information about
business activities to outside users.
Financial accounting provides information primarily to Right Ans -
Investors and creditors
What represents a resource of the company? Right Ans - An asset
What represents an obligation of the company? Right Ans - A liability
What describes the cost of selling to customers? Right Ans - Expenses
fundamental accounting equation? Right Ans - Assets = Liabilities +
Owner's Equity
Expenses represent: Right Ans - Costs of providing products or services to
customers.
Amounts owed to creditors are reported as Right Ans - liabilities
In which financial statement does a company report its revenues? Right
Ans - Income Statement
The financial statement that shows the financial position of a company at a
specific point in time is called the Right Ans - Balance Sheet
Which financial statement shows a company's revenues and expenses?
Right Ans - Income Statement
, The balance in retained earnings represents: Right Ans - The amount of
income earned over the company's life minus the dividends paid to
shareholders over the company's life.
Who ultimately is responsible for properly applying GAAP? The company's:
Right Ans - Management
A company reports the following in its income statement: Total revenues of
$500,000 and total expenses of $300,000. So, Right Ans - Net income
equals $200,000.
A company reports the following in its balance sheet: Total assets of $800,000
and total liabilities of $700,000. Which of the following is true? Right Ans -
Total stockholders' equity equals $100,000.
Which financial statement shows that a company's resources equal claims to
those resources? Right Ans - Balance Sheet
Which financial statement conveys a company's ability to generate profits in
the current period? Right Ans - Income Statement
Sales of products or services are referred to as Right Ans - revenues
Financial accounting serves which primary function(s)?
1)Measures business activities.
2)Communicates business activities to interested parties.
3)Makes business decisions on behalf of interested parties. Right Ans - 1
and 2
Transactions are recorded using debits and credits in a Right Ans - Journal
After transactions are recorded in the journal, they are posted to the: Right
Ans - General Ledger
All transactions related to a particular item over a period of time are
summarized in a(n): Right Ans - Account
A list of all account names used to record transactions of a company is
referred to as a: Right Ans - Chart of Accounts
