Financial Accounting Final Exam Questions And Answers 2024

Financial Accounting Final Exam Questions And Answers 2024EXAM ONE VOCAB - correct answer-accounting: is a system of maintaining records of a company's operations and communicating that information to decision makers. corporation: an entity that is legally separate from its owners. limited liability: prevents stockholders from being held personally responsible for the financial obligations of the corporations. sole proprietorship: is a business owned by two or more persons. partnership: is a business owned by two or more people. assets: are the total resources of a company. liabilities: are amounts owed to creditors. stockholders' equity: represents the owners' claims to the resources. accounting equation: equation that shows a company's resources (assets equal creditors' claim and owners' claims to resources (liabilities and stockholders' equity)). revenues: are the amounts recognized when the company sells products or provides services to customers. expenses: are the costs of providing products and services and other business activities during the current period. net income: is the difference between revenues and expenses. net loss: if expenses exceed revenues, the difference between them is a negative amount. dividends: are distributions (most often cash) to the owners of the company - the stockholders financial statements: are periodic reports published by the company for purpose of providing information to external users. income statements: is a financial statement that reports the company's revenues and expenses over an interval of time. statement of stockholders' equity: is a financial statement that summarizes the changes in stockholders' equity over an interval of time. common stock: is an external source of stockholders' equity. retained earnings: is an internal source of stockholders' equity. balance sheet: is a financial statement that presents the financial posi CHAPTER ONE - THREE SELF STUDY QUESTIONS - correct answer-based on the introductory section of this chapter, which course is most like financial accounting? answer: foreign language based on the introductory section of this chapter, financial accounting can also be described as a way to answer: tell the financial story of a company. financial accounting serves which primary functions(s)? answer: communicates business activities to interested parties, and makes business decisions on behalf of interested parties. resources of a company are referred to as: answer: assets sales of products or services are referred to as: answer: revenues amounts owed by the company are referred to as: answer: liabilities which financial statement conveys a company's ability to generate profits in the current period? answer: income statement which financial statement shows that a company's resources equal claims to those resources? answer: balance sheet a company reports the following in its income statement: total revenues of $500,000 and total expenses of $300,000. which of the following is true? answer: net Income equals $200,000 a company reports the following reports in its balance sheet: total assets of $800,000 and total liabilities of $700,000. which of the following is true? answer: total stockholders' equity equals $100,000