ACT 210 CSU TEST 1 2025
QUESTIONS AND ANSWERS
What is the primary purpose of financial accounting? - ....ANSWER ...-
Measure business activities and communicate those measures to external users to
make decisions
Financial accounting: - ....ANSWER ...-Provides information primarily for
external decision makers.
Creditors' claims to a corporation's resources are referred to as: -
....ANSWER ...-liabilities
What are liabilities of a company? - ....ANSWER ...-Salaries owed to
employees.
Taxes owed to the government.
Amounts owed to suppliers.
The equation best describing the balance sheet is: - ....ANSWER ...-Assets =
Liabilities + Stockholders' Equity.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Transactions of a company involving external sources of funding are referred to as:
- ....ANSWER ...-financing activities
Transactions related to the primary business activities of the company, such as
selling goods and services to customers, are referred to as - ....ANSWER ...-
operating activities
Transactions of a company that include the purchase and sale of long-term assets
are referred to as: - ....ANSWER ...-investing activities
Financial accounting and reporting standards in the United States are established
primarily by the: - ....ANSWER ...-Financial accounting standards board
Generally Accepted Accounting Principles (GAAP) are best defined as: -
....ANSWER ...-Standards or methods for presenting financial accounting
information
In which financial statement does a company report its expenses? -
....ANSWER ...-income statement
The financial statement that shows the financial position of a company at a specific
point in time is called the: - ....ANSWER ...-balance sheet
The financial statement(s) that record activity over an interval of time include the: -
....ANSWER ...-Income statement and statement of cash flows.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
QUESTIONS AND ANSWERS
What is the primary purpose of financial accounting? - ....ANSWER ...-
Measure business activities and communicate those measures to external users to
make decisions
Financial accounting: - ....ANSWER ...-Provides information primarily for
external decision makers.
Creditors' claims to a corporation's resources are referred to as: -
....ANSWER ...-liabilities
What are liabilities of a company? - ....ANSWER ...-Salaries owed to
employees.
Taxes owed to the government.
Amounts owed to suppliers.
The equation best describing the balance sheet is: - ....ANSWER ...-Assets =
Liabilities + Stockholders' Equity.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Transactions of a company involving external sources of funding are referred to as:
- ....ANSWER ...-financing activities
Transactions related to the primary business activities of the company, such as
selling goods and services to customers, are referred to as - ....ANSWER ...-
operating activities
Transactions of a company that include the purchase and sale of long-term assets
are referred to as: - ....ANSWER ...-investing activities
Financial accounting and reporting standards in the United States are established
primarily by the: - ....ANSWER ...-Financial accounting standards board
Generally Accepted Accounting Principles (GAAP) are best defined as: -
....ANSWER ...-Standards or methods for presenting financial accounting
information
In which financial statement does a company report its expenses? -
....ANSWER ...-income statement
The financial statement that shows the financial position of a company at a specific
point in time is called the: - ....ANSWER ...-balance sheet
The financial statement(s) that record activity over an interval of time include the: -
....ANSWER ...-Income statement and statement of cash flows.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
