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ACG 5026 FSU Fennema Questions and
Correct Answers
Balance Sheet Ans: A financial statement that reports assets,
liabilities, and owner's equity on a specific date/at a point in time.
Lists the company's investments and sources of financing using
the accounting equation
§ Assets=liabilities+equity
§ Statement of financial position
Statement of Cash Flows Ans: A financial statement that provides
financial information about the cash receipts and cash payments
of a business for a specific period of time.
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§ Operating cash flows differ from net income because of
differences in the time that revenues and expenses are recorded
and the time the cash is received and paid
§ Where did the money come from, where did it go
§ Operating, investing, financing
Income Statement Ans: A financial statement showing the
revenue and expenses for a fiscal period.
Reports the results of a company's operating activities over a
period of time
§ Revenues-expenses=net income
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§ Statement of income, statement of earnings, statement of
operations, statement of profit and loss
statement of stockholders' equity Ans: a financial statement that
shows changes in a corporation's ownership for a fiscal period
Contributed capital
· Amounts from issuing new stock during the period
· Common stock and additional paid-in capital
§ Retained earnings
· Cumulative income since the company began business minus
dividends paid out to shareholders
§ Other stockholders' equity changes
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GAAP (Generally Accepted Accounting Principles) Ans: §
Standards and accepted practices designed to guide the
preparation of financial statements
§ Based on underlying principles
§ Allows considerable discretion in preparation
§ Enables external users to rely on audited financial statements
§ FASB Ans: private organization setting rules under the offices
of the government (SEC)
o Currently establishes accounting standards in the US
o Developed a conceptual framework to serve as a guide for
accounting issues not covered by standards
© 2025 All rights reserved
ACG 5026 FSU Fennema Questions and
Correct Answers
Balance Sheet Ans: A financial statement that reports assets,
liabilities, and owner's equity on a specific date/at a point in time.
Lists the company's investments and sources of financing using
the accounting equation
§ Assets=liabilities+equity
§ Statement of financial position
Statement of Cash Flows Ans: A financial statement that provides
financial information about the cash receipts and cash payments
of a business for a specific period of time.
© 2025 All rights reserved
, 2 | Page
§ Operating cash flows differ from net income because of
differences in the time that revenues and expenses are recorded
and the time the cash is received and paid
§ Where did the money come from, where did it go
§ Operating, investing, financing
Income Statement Ans: A financial statement showing the
revenue and expenses for a fiscal period.
Reports the results of a company's operating activities over a
period of time
§ Revenues-expenses=net income
© 2025 All rights reserved
, 3 | Page
§ Statement of income, statement of earnings, statement of
operations, statement of profit and loss
statement of stockholders' equity Ans: a financial statement that
shows changes in a corporation's ownership for a fiscal period
Contributed capital
· Amounts from issuing new stock during the period
· Common stock and additional paid-in capital
§ Retained earnings
· Cumulative income since the company began business minus
dividends paid out to shareholders
§ Other stockholders' equity changes
© 2025 All rights reserved
, 4 | Page
GAAP (Generally Accepted Accounting Principles) Ans: §
Standards and accepted practices designed to guide the
preparation of financial statements
§ Based on underlying principles
§ Allows considerable discretion in preparation
§ Enables external users to rely on audited financial statements
§ FASB Ans: private organization setting rules under the offices
of the government (SEC)
o Currently establishes accounting standards in the US
o Developed a conceptual framework to serve as a guide for
accounting issues not covered by standards
© 2025 All rights reserved
