ACCT 2000 Lowe Ardoin Exam Review
(Verified Q’s & Answers)
Liquidity - ✔✔the ease with which an asset can be converted into cash
Profitability ratio - ✔✔measures income or operating success, Earnings Per
Share=Net Income-preferred dividends/ average C/S shares outstanding
Liquidity Ratios - ✔✔Cuurent Ratio= Assets/ Liabilities
GAAP - ✔✔Generally Accepted Accounting Principles. The standards and rules
that accountants follow while recording and reporting financial activities.
FASB (Financial Accounting Standards Board) - ✔✔The PRIMARY accounting standard-
setting body in the United States.
SEC (Securities and Exchange Commission) - ✔✔Makes and Enforces rules for the
stock market
IASB (International Accounting Standards Board) - ✔✔the organization formed to
develop worldwide accounting standards
, Accounting system is a system of... - ✔✔collecting, processing transaction data,
and communicating
basic acct equation - ✔✔Assets= Liabilities +Stockholder's Equity
2 sides of basic acct equation must always be... - ✔✔equal
Net Income= - ✔✔Revenue-Expenses
Retained Earnings= - ✔✔Beginning Retained Earnings + Net Income - Dividends
2 components of Stockholder's Equity are: - ✔✔Common Stock + Retained Earnings
Due to interrelationships, statements must be completed in this order - ✔✔1)
INcome Statement 2)Retained Earnings Statement 3) Balance Sheet
Factors of income statements include, - ✔✔lists of revenue and expenses, cover a
specific period of time, show net income or net loss
Factors of Retained Earnings sheet include, - ✔✔changes in retained earnings over a
period of time, finds new retained earning amount
Factors of Balance Sheet include, - ✔✔reports assets, liabilities, and stockholder's equity.
Assets must = liabilities + Stockholder's Equity. Prepared as of a specific date. ending
retained earnings not included on balance sheet
(Verified Q’s & Answers)
Liquidity - ✔✔the ease with which an asset can be converted into cash
Profitability ratio - ✔✔measures income or operating success, Earnings Per
Share=Net Income-preferred dividends/ average C/S shares outstanding
Liquidity Ratios - ✔✔Cuurent Ratio= Assets/ Liabilities
GAAP - ✔✔Generally Accepted Accounting Principles. The standards and rules
that accountants follow while recording and reporting financial activities.
FASB (Financial Accounting Standards Board) - ✔✔The PRIMARY accounting standard-
setting body in the United States.
SEC (Securities and Exchange Commission) - ✔✔Makes and Enforces rules for the
stock market
IASB (International Accounting Standards Board) - ✔✔the organization formed to
develop worldwide accounting standards
, Accounting system is a system of... - ✔✔collecting, processing transaction data,
and communicating
basic acct equation - ✔✔Assets= Liabilities +Stockholder's Equity
2 sides of basic acct equation must always be... - ✔✔equal
Net Income= - ✔✔Revenue-Expenses
Retained Earnings= - ✔✔Beginning Retained Earnings + Net Income - Dividends
2 components of Stockholder's Equity are: - ✔✔Common Stock + Retained Earnings
Due to interrelationships, statements must be completed in this order - ✔✔1)
INcome Statement 2)Retained Earnings Statement 3) Balance Sheet
Factors of income statements include, - ✔✔lists of revenue and expenses, cover a
specific period of time, show net income or net loss
Factors of Retained Earnings sheet include, - ✔✔changes in retained earnings over a
period of time, finds new retained earning amount
Factors of Balance Sheet include, - ✔✔reports assets, liabilities, and stockholder's equity.
Assets must = liabilities + Stockholder's Equity. Prepared as of a specific date. ending
retained earnings not included on balance sheet
