A200 Midterm Exam Questions and Answers Already Passed Latest Update 2025-2026
Which decision maker is "inside" the company and often needs more detailed information for
decision making than the others? - Answers managers
Which business organization type has limited legal liability? - Answers corporations
How do creditors (lenders, banks) earn a return on the loans they make to companies? -
Answers interest from the loan
purchased a building for $100,000. How should you categorize this activity? - Answers investing
activity
are dividends an expense? - Answers no
When expenses are greater than revenues, the company will record what? - Answers Net Loss
what is the ending balance on retained earnings formula? - Answers Beg. RE+Net income-
dividends
What is cash considered? - Answers asset
What term serves an important role in a prosperous society? - Answers Accounting
When do companies with publicly traded stock prepare 10K reports? - Answers At the end of the
fiscal year
Balance sheet formula? - Answers Assets = Liabilities + Stockholders' Equity
Assets are listed in what order on the Balance Sheet? - Answers decreasing order of liquidity
(turn to cash the quickest (cash first))
long term assets? - Answers assets that are expected to be used in business operations for
longer than one year (property, equipment, licenses)
current assets - Answers Assets that companies expect to convert to cash or use up within one
year (cash, inventory)
long-term liabilities - Answers payment due in over a year (loans, mortgages)
Current Liabilities - Answers liabilities due within a year (accounts payable, deferred revenue,
salaries, interest, taxes)
Example of deferred revenue? - Answers gift cards
deferred revenue is what type of account? - Answers liability
what are two main Contributed Capital (owner contributions) ? - Answers common stock and
Which decision maker is "inside" the company and often needs more detailed information for
decision making than the others? - Answers managers
Which business organization type has limited legal liability? - Answers corporations
How do creditors (lenders, banks) earn a return on the loans they make to companies? -
Answers interest from the loan
purchased a building for $100,000. How should you categorize this activity? - Answers investing
activity
are dividends an expense? - Answers no
When expenses are greater than revenues, the company will record what? - Answers Net Loss
what is the ending balance on retained earnings formula? - Answers Beg. RE+Net income-
dividends
What is cash considered? - Answers asset
What term serves an important role in a prosperous society? - Answers Accounting
When do companies with publicly traded stock prepare 10K reports? - Answers At the end of the
fiscal year
Balance sheet formula? - Answers Assets = Liabilities + Stockholders' Equity
Assets are listed in what order on the Balance Sheet? - Answers decreasing order of liquidity
(turn to cash the quickest (cash first))
long term assets? - Answers assets that are expected to be used in business operations for
longer than one year (property, equipment, licenses)
current assets - Answers Assets that companies expect to convert to cash or use up within one
year (cash, inventory)
long-term liabilities - Answers payment due in over a year (loans, mortgages)
Current Liabilities - Answers liabilities due within a year (accounts payable, deferred revenue,
salaries, interest, taxes)
Example of deferred revenue? - Answers gift cards
deferred revenue is what type of account? - Answers liability
what are two main Contributed Capital (owner contributions) ? - Answers common stock and
