ACCT 201A FINAL EXAM REVIEW CSUF
COMPLETE QUESTIONS AND CORRECT
ANSWERS | GRADED AND THE LATEST SERIES
Definition that best describes financial accounting?
Ans: Measuring a company's business activities and communicating
those measurements to external parties.
Question: The primary function(s) of financial accounting is(are) to:
Ans: Measure business activities of a company and communicate
information about business activities to outside users.
Question: Financial accounting provides information primarily to
Ans: Investors and creditors
Question: What represents a resource of the company?
Ans: An asset
Question: What represents an obligation of the company?
Ans: A liability
Question: What describes the cost of selling to customers?
,Ans: Expenses
Question: fundamental accounting equation?
Ans: Assets = Liabilities + Owner's Equity
Question: Expenses represent:
Ans: Costs of providing products or services to customers.
Question: Amounts owed to creditors are reported as
Ans: liabilities
Question: In which financial statement does a company report its
revenues?
Ans: Income Statement
Question: The financial statement that shows the financial position of
a company at a specific point in time is called the
Ans: Balance Sheet
Question: Which financial statement shows a company's revenues
and expenses?
, Ans: Income Statement
Question: The balance in retained earnings represents:
Ans: The amount of income earned over the company's life minus the
dividends paid to shareholders over the company's life.
Question: Who ultimately is responsible for properly applying
GAAP? The company's:
Ans: Management
Question: A company reports the following in its income statement:
Total revenues of $500,000 and total expenses of $300,000. So,
Ans: Net income equals $200,000.
Question: 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?
Ans: Total stockholders' equity equals $100,000.
Question: Which financial statement shows that a company's
resources equal claims to those resources?
COMPLETE QUESTIONS AND CORRECT
ANSWERS | GRADED AND THE LATEST SERIES
Definition that best describes financial accounting?
Ans: Measuring a company's business activities and communicating
those measurements to external parties.
Question: The primary function(s) of financial accounting is(are) to:
Ans: Measure business activities of a company and communicate
information about business activities to outside users.
Question: Financial accounting provides information primarily to
Ans: Investors and creditors
Question: What represents a resource of the company?
Ans: An asset
Question: What represents an obligation of the company?
Ans: A liability
Question: What describes the cost of selling to customers?
,Ans: Expenses
Question: fundamental accounting equation?
Ans: Assets = Liabilities + Owner's Equity
Question: Expenses represent:
Ans: Costs of providing products or services to customers.
Question: Amounts owed to creditors are reported as
Ans: liabilities
Question: In which financial statement does a company report its
revenues?
Ans: Income Statement
Question: The financial statement that shows the financial position of
a company at a specific point in time is called the
Ans: Balance Sheet
Question: Which financial statement shows a company's revenues
and expenses?
, Ans: Income Statement
Question: The balance in retained earnings represents:
Ans: The amount of income earned over the company's life minus the
dividends paid to shareholders over the company's life.
Question: Who ultimately is responsible for properly applying
GAAP? The company's:
Ans: Management
Question: A company reports the following in its income statement:
Total revenues of $500,000 and total expenses of $300,000. So,
Ans: Net income equals $200,000.
Question: 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?
Ans: Total stockholders' equity equals $100,000.
Question: Which financial statement shows that a company's
resources equal claims to those resources?
