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Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
FINANCIAL ACCOUNTING EXAM TESTS 2024-2025 COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
Accounting
Ans: System that collects and processes (analyzes, measures, and records)
financial information about an organization and reports that information to decision
makers.
Quiz Accounting entity
Ans: Is the organization for with financial data are to be collected.
Quiz The four basic statements:
Ans: 1. Balance Sheet
2. Income Statement
3. Statement of Retained Earnings
4. Statement of Cash flows
Quiz Balance Sheet
Ans: Reports the amount of assets, liabilities and stockholders' equity of an
accounting entry at a point in time.
Quiz Income Statement
Ans: Reports the revenues less the expenses of the accounting period.
Quiz Statement of Retained Earnings
Ans: Reports the way that net income and the distribution of dividends affected the
financial position of the company during the accounting period.
Quiz Statement of Cash Flows
,Ans: Reports inflows and outflows of cash during the accounting period in the
categories of operating, investing, and financing.
Quiz Basic Accounting Equation
Ans: Assets = Liabilities + Stockholders' Equity
Quiz Assets
Ans: Are the economic resources owned by the company. Each of these economic
resources is expected to provide future benefits to the firm.
Quiz Liabilities
Ans: Are the company's debts or obligations. Which will be paid with assets or
services.
Quiz Stockholders' Equity (Owners' Equity)
Ans: Indicates the amount of financing provided by owners of the business and
earnings. Is the sum of the contribute capital + the retained earnings.
Quiz Accounting Period
Ans: Is the time period cover by the financial statements.
Quiz Elements of the Income Statement
Ans: Revenues, Expenses and Net Income.
Quiz Revenues
Ans: Earnings from the sale of goods or services to costumers. Revenues are
reported whether or not have yet been paid for.
Quiz Expenses
Ans: Represent the dollar amount of resources the entity used to earn revenue
during the period.
Quiz Net Income ("the bottom line")
Ans: Is the excess of total revenues over total expenses.
Quiz Net Loss
Ans: If total expenses exceed total revenues.
Quiz Retained Earning Equation
, Ans: Ending Retained Earnings = (Beginning of Retained Earnings + Net Income) -
Dividends
Quiz The Cash Flow Statement Equation
Ans: +/- Cash flow from Operating Activities (CFO)
+/- Cash flow from Investing Activities (CFI)
+/- Cash flow from Financing Activities (CFF)
----------------------------------------
Change in Cash
Quiz Cash Flow from Operating Activities, and examples
Ans: CFO- Are cash flow that are directly related to earning income. Example,
collecting cash from costumers, pay salaries, pay bills, pay to suppliers.
Quiz Cash Flow from Investing Activities, and examples
Ans: CFI- Are cash flow related to the acquisition or sale of the company's
productive assets. Example, the purchase of additional equipment.
Quiz Cash Flow from Financing Activities, and examples
Ans: CFF- Are cash flow directly related to the financing of the enterprise itself.
Example, the payment of money to investors and creditors.
Quiz Notes
Ans: "Footnotes" provide supplemental information about the financial condition of a
company.
Quiz GAAP
Ans: Generally Accepted Accounting Principles, are the measurement rules used to
develop the information in financial statements.
Quiz SEC
Ans: Security and Exchange Commission, is the U.S government agency that
determines the financial statements that public companies must provide to
stockholders, and the rules that they must use in producing those statements.
Quiz FASB
Ans: Financial Accounting Standards Board, is the private sector body given the
primary responsibility to work out the detailed rules that become GAAP.
Quiz Audit
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
FINANCIAL ACCOUNTING EXAM TESTS 2024-2025 COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
Accounting
Ans: System that collects and processes (analyzes, measures, and records)
financial information about an organization and reports that information to decision
makers.
Quiz Accounting entity
Ans: Is the organization for with financial data are to be collected.
Quiz The four basic statements:
Ans: 1. Balance Sheet
2. Income Statement
3. Statement of Retained Earnings
4. Statement of Cash flows
Quiz Balance Sheet
Ans: Reports the amount of assets, liabilities and stockholders' equity of an
accounting entry at a point in time.
Quiz Income Statement
Ans: Reports the revenues less the expenses of the accounting period.
Quiz Statement of Retained Earnings
Ans: Reports the way that net income and the distribution of dividends affected the
financial position of the company during the accounting period.
Quiz Statement of Cash Flows
,Ans: Reports inflows and outflows of cash during the accounting period in the
categories of operating, investing, and financing.
Quiz Basic Accounting Equation
Ans: Assets = Liabilities + Stockholders' Equity
Quiz Assets
Ans: Are the economic resources owned by the company. Each of these economic
resources is expected to provide future benefits to the firm.
Quiz Liabilities
Ans: Are the company's debts or obligations. Which will be paid with assets or
services.
Quiz Stockholders' Equity (Owners' Equity)
Ans: Indicates the amount of financing provided by owners of the business and
earnings. Is the sum of the contribute capital + the retained earnings.
Quiz Accounting Period
Ans: Is the time period cover by the financial statements.
Quiz Elements of the Income Statement
Ans: Revenues, Expenses and Net Income.
Quiz Revenues
Ans: Earnings from the sale of goods or services to costumers. Revenues are
reported whether or not have yet been paid for.
Quiz Expenses
Ans: Represent the dollar amount of resources the entity used to earn revenue
during the period.
Quiz Net Income ("the bottom line")
Ans: Is the excess of total revenues over total expenses.
Quiz Net Loss
Ans: If total expenses exceed total revenues.
Quiz Retained Earning Equation
, Ans: Ending Retained Earnings = (Beginning of Retained Earnings + Net Income) -
Dividends
Quiz The Cash Flow Statement Equation
Ans: +/- Cash flow from Operating Activities (CFO)
+/- Cash flow from Investing Activities (CFI)
+/- Cash flow from Financing Activities (CFF)
----------------------------------------
Change in Cash
Quiz Cash Flow from Operating Activities, and examples
Ans: CFO- Are cash flow that are directly related to earning income. Example,
collecting cash from costumers, pay salaries, pay bills, pay to suppliers.
Quiz Cash Flow from Investing Activities, and examples
Ans: CFI- Are cash flow related to the acquisition or sale of the company's
productive assets. Example, the purchase of additional equipment.
Quiz Cash Flow from Financing Activities, and examples
Ans: CFF- Are cash flow directly related to the financing of the enterprise itself.
Example, the payment of money to investors and creditors.
Quiz Notes
Ans: "Footnotes" provide supplemental information about the financial condition of a
company.
Quiz GAAP
Ans: Generally Accepted Accounting Principles, are the measurement rules used to
develop the information in financial statements.
Quiz SEC
Ans: Security and Exchange Commission, is the U.S government agency that
determines the financial statements that public companies must provide to
stockholders, and the rules that they must use in producing those statements.
Quiz FASB
Ans: Financial Accounting Standards Board, is the private sector body given the
primary responsibility to work out the detailed rules that become GAAP.
Quiz Audit
