Assessment Prep ?s

Question 1

The primary objective of financial accounting

Answer 1

to provide financial statements to help external users analyze an organization’s activities

Question 1

All else equal, the present value ________ as the period of time decreases

Answer 1

Increases

Question 2

External users of accounting information include

Answer 2

shareholders

Question 3

Assets

Answer 3

Cash, accounts receivable, prepaid expenses, equipment, supplies

Question 4

Financing activities

Answer 4

Debt + equity

Issue common stock
Loans (bonds, notes)
Repaying principal to creditors
Paying dividends
Repurchasing shares

Question 5

Investing activities

Answer 5

PPE, long term assets

Purchase or sale of IP
Purchase or sale of stocks/bonds

Question 6

Revenue

Answer 6

Sales
Service
Interest
Accounts receivable

Question 7

Expenses

Answer 7

Cost of good sold
Cost of asset consumed
Selling expense
Marketing
Fixed costs
Interest on debt
Taxes
Accounts payable

Question 8

Operating Activities

Answer 8

Purchase and use of supplies
Restocking inventory
Paying employees
Fueling equipment
Renting space
Pay interest, taxes

Question 9

What increases liabilities

Answer 9

Buying supplies on account

Question 10

Examples of expenses

Answer 10

Payment of rent