agec 340 Exam Questions and Answers
Graded A+
managerial accounting - Correct answer-collection and use of financial information
to make management position
financial accounting - Correct answer-collection and use of financial information to
meet outside reporting requirements
Balance Sheet - Correct answer-A financial document that is a snapshot in time
Income Statement - Correct answer-a financial document that is a specific period
of time
Gross margin - Correct answer-net sales-cost of goods sold =?
Net operating income - Correct answer-gross margin-operating expenses=?
expenditure - Correct answer-incurred when the business acquires an asset
expenses - Correct answer-expenditures that are incurred during the accounting
period being reported
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, cash-basis approach - Correct answer-revenue and expenses occur when cash is
received or period
accural-basis approach - Correct answer-revenues and expenses exist whenever
they are earned or incurred regardless of when cash transaction occurs
profit - Correct answer-amount remaining from a sale after cost of product,
expenses and interest have been paid
a record system should be: - Correct answer-1. Simple and easy to understand
2. Reliable, accurate, consistent, and timely
3. Based on the uniqueness of the particular business
4. Cost effective to implement and maintain
determines: success of business, financial condition, trends in performaces,
choosing alternatives for future - Correct answer-what are good finacial records
used for?
profitability, efficiency, solvency, and liquidity - Correct answer-areas of analysis
benchmarking - Correct answer-
Why do we use ratio analysis - Correct answer-easy to: calculate, make
comparisons, understand and communicate firms financial position
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Graded A+
managerial accounting - Correct answer-collection and use of financial information
to make management position
financial accounting - Correct answer-collection and use of financial information to
meet outside reporting requirements
Balance Sheet - Correct answer-A financial document that is a snapshot in time
Income Statement - Correct answer-a financial document that is a specific period
of time
Gross margin - Correct answer-net sales-cost of goods sold =?
Net operating income - Correct answer-gross margin-operating expenses=?
expenditure - Correct answer-incurred when the business acquires an asset
expenses - Correct answer-expenditures that are incurred during the accounting
period being reported
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, cash-basis approach - Correct answer-revenue and expenses occur when cash is
received or period
accural-basis approach - Correct answer-revenues and expenses exist whenever
they are earned or incurred regardless of when cash transaction occurs
profit - Correct answer-amount remaining from a sale after cost of product,
expenses and interest have been paid
a record system should be: - Correct answer-1. Simple and easy to understand
2. Reliable, accurate, consistent, and timely
3. Based on the uniqueness of the particular business
4. Cost effective to implement and maintain
determines: success of business, financial condition, trends in performaces,
choosing alternatives for future - Correct answer-what are good finacial records
used for?
profitability, efficiency, solvency, and liquidity - Correct answer-areas of analysis
benchmarking - Correct answer-
Why do we use ratio analysis - Correct answer-easy to: calculate, make
comparisons, understand and communicate firms financial position
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
