ACCOUNTING 203 UTK FINAL EXAM
QUESTIONS 100% ANSWERED
, What is a business? - ANSWEROrganization that assembles and processes basic
resources, such as materials and labor, to provide goods and services to customers
Three types of businesses - ANSWERservice, merchandising, manufacturing
Three forms of business - ANSWERProprietorship, partnership, corporation
Accounting - ANSWERidentifies, measures, records, and communicates financial
information about a company's business activity
Accounting is three things: - ANSWERrecording, summarizing, and reporting
Types of accounting - ANSWERfinancial and managerial
Three types of business activities: - ANSWER1. operating- day to day operations to
make profit
2. investing- buying or selling assets to generate revenue
3. financing- issuance or repayment of debt & equity or the payment of dividends
Financial statements provide - ANSWERinformation that helps investors, creditors, and
others make judgements that serve as the basis for the various decisions they make
Financial statements in order - ANSWER1. balance sheet beginning of period
- 2,3,4 (period of time statements) I/S, ret Earning, State Cash flow
5. balance sheet end of period
Balance sheet - ANSWERreports the assets owned by a company and the (claims
against those resources) (creditors + owners) at a specific point in time
Accounting equation - ANSWERAssets = Liabilities + Owner's Equity
Liquidity - ANSWERability to pay its obligations as they become due
Working capital= - ANSWERcurrent assets - current liabilities
Current ratio= - ANSWERcurrent assets / current liabilities
Income statement - ANSWERreports how well the company has performed over a
period of time
Revenues - ANSWERincrease in net assets that result from the sale of product or
service
QUESTIONS 100% ANSWERED
, What is a business? - ANSWEROrganization that assembles and processes basic
resources, such as materials and labor, to provide goods and services to customers
Three types of businesses - ANSWERservice, merchandising, manufacturing
Three forms of business - ANSWERProprietorship, partnership, corporation
Accounting - ANSWERidentifies, measures, records, and communicates financial
information about a company's business activity
Accounting is three things: - ANSWERrecording, summarizing, and reporting
Types of accounting - ANSWERfinancial and managerial
Three types of business activities: - ANSWER1. operating- day to day operations to
make profit
2. investing- buying or selling assets to generate revenue
3. financing- issuance or repayment of debt & equity or the payment of dividends
Financial statements provide - ANSWERinformation that helps investors, creditors, and
others make judgements that serve as the basis for the various decisions they make
Financial statements in order - ANSWER1. balance sheet beginning of period
- 2,3,4 (period of time statements) I/S, ret Earning, State Cash flow
5. balance sheet end of period
Balance sheet - ANSWERreports the assets owned by a company and the (claims
against those resources) (creditors + owners) at a specific point in time
Accounting equation - ANSWERAssets = Liabilities + Owner's Equity
Liquidity - ANSWERability to pay its obligations as they become due
Working capital= - ANSWERcurrent assets - current liabilities
Current ratio= - ANSWERcurrent assets / current liabilities
Income statement - ANSWERreports how well the company has performed over a
period of time
Revenues - ANSWERincrease in net assets that result from the sale of product or
service
