BUS-A 100 Final Exam Questions With
Verified Answers
Accounting d- dAnswer d- dRecording dof dbusiness dtransactions, dpreparation dof dsummary dreports, dand
danalyzing dfinancial dinformation.
Financial dstatements d- dAnswer d- dReports dprepared dfrom daccounting dsystems, dprepared dobjectively dand
dimpartially.
Financial daccounting d- dAnswer d- dRecords dan dreports davailable dpublicly.
Financing dactivities d- dAnswer d- dTransactions dthat draise dexpendable dfunds d(equity dand ddebt). dCategory
dassociated dwith dthe dStatement dof dCash dFlows.
Examples: dFinancing dactivities d- dAnswer d- dBorrowing dor drepaying dloans, dissuing dstock, dpaying
ddividends.
Investing dactivities d- dAnswer d- dTransactions dthat dthe dcompany duses dto dinvest din dassets dthat dwill dbe
dused din dbusiness doperations. dCategory dassociated dwith dthe dStatement dof dCash dFlows.
Examples: dInvesting dactivities d- dAnswer d- dPurchase dand dsale dof dfixed/long-term dassets.
Operating dactivities d- dAnswer d- dUnclassified dtransactions dthat dare dinvolved din dthe ddaily dfunctions dof
dthe dbusiness. dCategory dassociated dwith dthe dStatement dof dCash dFlows.
Examples: dOperating dactivities d- dAnswer d- dSelling dgoods/services, dpurchasing dinventory, dpaying
dinterest, dpaying dsuppliers dand demployees.
Equity d- dAnswer d- dOwnership dclaims dover da dbusiness d(equity dinvestors/stockholders/shareholders).
dAlso da dmeasure dof dthe dportion dof da dcompany's dassets dthat dare downed doutright.
Debt d- dAnswer d- dBorrowing dmoney dfrom dinvestors dor dbanks d(not downers).
Creditors d- dAnswer d- dPeople dor dgroups dthat dloan dmoney dout d(debt dinvestors).
Principal d- dAnswer d- dThe dmain damount dof dmoney dborrowed, dexcluding dinterest.
Loan dcontract d- dAnswer d- dThe dspecific dterms/requirements dof da dloan.
Maturity ddate d- dAnswer d- dDate dby dwhich da dloan dis dto dbe drepaid din dfull d(principal dand dinterest).
Collateral d- dAnswer d- dAssets dto dbe dseized dif da dloan dis dnot drepaid.
Default d- dAnswer d- dOccurs dwhen da dborrower dfails dto dpay dback da dloan.
, Securities dand dExchange dCommission d(SEC) d- dAnswer d- dU.S. dgovernment dorganization d(1934), dpurpose
dto dmaintain dfair dand dtruthful dcapital dmarkets dfor dpublic dcorporations. dProvide dstandards dfor dthe
dcreation dof dfinancial dstatements.
"Publicly dheld" dcorporation d- dAnswer d- dCorporation dthat dtrades dtheir dstock don dan dexchange.
Form d10K d- dAnswer d- dAnnual daudited dreport dthat dpublicly dtraded dcompanies dmust dfile dwith dthe dSEC.
Form d10Q d- dAnswer d- dQuarterly dunaudited dreport dthat dpublicly dtraded dcompanies dmust dfile dwith dthe
dSEC.
Four dFinancial dStatements d- dAnswer d- dIncome dStatement, dStatement dof dRetained dEarnings, dBalance
dSheet, dStatement dof dCash dFlows d(also: dnotes dto dthe dfinancial dstatements).
Independent dauditor/External dauditor d- dAnswer d- dLicensed dcertified dpublic daccountant dengaged dto
daudit da dcompany's dfinancial dstatements, dnot dan demployee dof dthe daudited dcompany. dCannot dhave
dpersonal dties dto dthe dcompany dthey dare dauditing.
Public daccounting dfirms d- dAnswer d- dProvide dservices d(audits) dto dother dcompanies.
Audit d- dAnswer d- dAuditors dexamine da dcompany's dfinancial dstatements dand dissue dan dopinion. dThe
dpurpose dof dan daudit dis dto destablish dthe dcredibility dof daudited dfinancial dstatements.
Big dFour daccounting dfirms d- dAnswer d- dDeloitte, dErnst d& dYoung, dKPMG, dPricewaterhouseCoopers
d(PWC).
Corporate dgovernance d- dAnswer d- dMechanisms dwithin da dcompany dthat dinspire dmanagers dto dreport dthe
dtruth din dfinancial dstatements d(social dpressures, dreputation, dlegal dliability).
Generally dAccepted dAccounting dPrinciples d(GAAP) d- dAnswer d- dAccounting dstandards dformally din duse din
dthe dU.S. dsince dthe dSEC's dformation d(an dis dunder dits djurisdiction). dProposes da d"rules-based" dapproach
dto daccounting dthat dgives dguidance dfor ddealing dwith dcommon dand duncommon dtransactions.
International dFinancial dReporting dStandards d(IFRS) d- dAnswer d- dInternationally dused dset dof drules dfor
dfinancial dstatements d(under dthe djurisdiction dof dthe dIASB). dProposes da d"principles-based" dapproach dto
daccounting dthat dgives dless dguidance.
International dAccounting dStandards dBoard d(IASB) d- dAnswer d- dAn dinternational daccounting dstandard-
setting dbody dresponsible dfor dthe dconvergence dof daccounting dstandards dworldwide.
Reporting dentities d- dAnswer d- dOrganizations dthat dprepare dfinancial dstatements d(businesses,
dgovernment dentities, dcharities).
Who dprepares dfinancial dstatements? d- dAnswer d- dManagement, dfor dinterested dparties. dStatements dstill
dmust dbe daudited dexternally.
Managerial daccounting dreports d- dAnswer d- dDetailed dplans dand dcontinuous dperformance dreports
ddesigned dto dprovide dinformation dto dinternal ddecision dmakers d(people demployed dby dthe dbusiness dlike
dmanagers dor demployees).
Verified Answers
Accounting d- dAnswer d- dRecording dof dbusiness dtransactions, dpreparation dof dsummary dreports, dand
danalyzing dfinancial dinformation.
Financial dstatements d- dAnswer d- dReports dprepared dfrom daccounting dsystems, dprepared dobjectively dand
dimpartially.
Financial daccounting d- dAnswer d- dRecords dan dreports davailable dpublicly.
Financing dactivities d- dAnswer d- dTransactions dthat draise dexpendable dfunds d(equity dand ddebt). dCategory
dassociated dwith dthe dStatement dof dCash dFlows.
Examples: dFinancing dactivities d- dAnswer d- dBorrowing dor drepaying dloans, dissuing dstock, dpaying
ddividends.
Investing dactivities d- dAnswer d- dTransactions dthat dthe dcompany duses dto dinvest din dassets dthat dwill dbe
dused din dbusiness doperations. dCategory dassociated dwith dthe dStatement dof dCash dFlows.
Examples: dInvesting dactivities d- dAnswer d- dPurchase dand dsale dof dfixed/long-term dassets.
Operating dactivities d- dAnswer d- dUnclassified dtransactions dthat dare dinvolved din dthe ddaily dfunctions dof
dthe dbusiness. dCategory dassociated dwith dthe dStatement dof dCash dFlows.
Examples: dOperating dactivities d- dAnswer d- dSelling dgoods/services, dpurchasing dinventory, dpaying
dinterest, dpaying dsuppliers dand demployees.
Equity d- dAnswer d- dOwnership dclaims dover da dbusiness d(equity dinvestors/stockholders/shareholders).
dAlso da dmeasure dof dthe dportion dof da dcompany's dassets dthat dare downed doutright.
Debt d- dAnswer d- dBorrowing dmoney dfrom dinvestors dor dbanks d(not downers).
Creditors d- dAnswer d- dPeople dor dgroups dthat dloan dmoney dout d(debt dinvestors).
Principal d- dAnswer d- dThe dmain damount dof dmoney dborrowed, dexcluding dinterest.
Loan dcontract d- dAnswer d- dThe dspecific dterms/requirements dof da dloan.
Maturity ddate d- dAnswer d- dDate dby dwhich da dloan dis dto dbe drepaid din dfull d(principal dand dinterest).
Collateral d- dAnswer d- dAssets dto dbe dseized dif da dloan dis dnot drepaid.
Default d- dAnswer d- dOccurs dwhen da dborrower dfails dto dpay dback da dloan.
, Securities dand dExchange dCommission d(SEC) d- dAnswer d- dU.S. dgovernment dorganization d(1934), dpurpose
dto dmaintain dfair dand dtruthful dcapital dmarkets dfor dpublic dcorporations. dProvide dstandards dfor dthe
dcreation dof dfinancial dstatements.
"Publicly dheld" dcorporation d- dAnswer d- dCorporation dthat dtrades dtheir dstock don dan dexchange.
Form d10K d- dAnswer d- dAnnual daudited dreport dthat dpublicly dtraded dcompanies dmust dfile dwith dthe dSEC.
Form d10Q d- dAnswer d- dQuarterly dunaudited dreport dthat dpublicly dtraded dcompanies dmust dfile dwith dthe
dSEC.
Four dFinancial dStatements d- dAnswer d- dIncome dStatement, dStatement dof dRetained dEarnings, dBalance
dSheet, dStatement dof dCash dFlows d(also: dnotes dto dthe dfinancial dstatements).
Independent dauditor/External dauditor d- dAnswer d- dLicensed dcertified dpublic daccountant dengaged dto
daudit da dcompany's dfinancial dstatements, dnot dan demployee dof dthe daudited dcompany. dCannot dhave
dpersonal dties dto dthe dcompany dthey dare dauditing.
Public daccounting dfirms d- dAnswer d- dProvide dservices d(audits) dto dother dcompanies.
Audit d- dAnswer d- dAuditors dexamine da dcompany's dfinancial dstatements dand dissue dan dopinion. dThe
dpurpose dof dan daudit dis dto destablish dthe dcredibility dof daudited dfinancial dstatements.
Big dFour daccounting dfirms d- dAnswer d- dDeloitte, dErnst d& dYoung, dKPMG, dPricewaterhouseCoopers
d(PWC).
Corporate dgovernance d- dAnswer d- dMechanisms dwithin da dcompany dthat dinspire dmanagers dto dreport dthe
dtruth din dfinancial dstatements d(social dpressures, dreputation, dlegal dliability).
Generally dAccepted dAccounting dPrinciples d(GAAP) d- dAnswer d- dAccounting dstandards dformally din duse din
dthe dU.S. dsince dthe dSEC's dformation d(an dis dunder dits djurisdiction). dProposes da d"rules-based" dapproach
dto daccounting dthat dgives dguidance dfor ddealing dwith dcommon dand duncommon dtransactions.
International dFinancial dReporting dStandards d(IFRS) d- dAnswer d- dInternationally dused dset dof drules dfor
dfinancial dstatements d(under dthe djurisdiction dof dthe dIASB). dProposes da d"principles-based" dapproach dto
daccounting dthat dgives dless dguidance.
International dAccounting dStandards dBoard d(IASB) d- dAnswer d- dAn dinternational daccounting dstandard-
setting dbody dresponsible dfor dthe dconvergence dof daccounting dstandards dworldwide.
Reporting dentities d- dAnswer d- dOrganizations dthat dprepare dfinancial dstatements d(businesses,
dgovernment dentities, dcharities).
Who dprepares dfinancial dstatements? d- dAnswer d- dManagement, dfor dinterested dparties. dStatements dstill
dmust dbe daudited dexternally.
Managerial daccounting dreports d- dAnswer d- dDetailed dplans dand dcontinuous dperformance dreports
ddesigned dto dprovide dinformation dto dinternal ddecision dmakers d(people demployed dby dthe dbusiness dlike
dmanagers dor demployees).
