Exam (elaborations)
KOSSA Review – Questions With Solutions
KOSSA Review – Questions With Solutions
[Show more]
Content preview
KOSSA Review – Questions With SolutionsAccounting Correct Ans - information system that identifies,
records, and communicates the economic events of an organization
Annual report Correct Ans - report prepared by corporate
management that presents financial information and an independent
auditor's report
Assets Correct Ans - Resources owned by a business
Auditor's report Correct Ans - A report prepared by an
independent outside auditor stating the auditor's opinion as to the fairness
of the presentation of the financial position and results of operations and
their conformance with generally accepted accounting standards.
Balance sheet Correct Ans - A financial statement that reports the
assets and claims to those assets at a specific point in time.
Basic accounting equation Correct Ans - Assets = Liabilities +
Stockholders' Equity.
Certified Public Accountant (CPA) Correct Ans - An individual who
has met certain criteria and is thus allowed to perform audits of
corporations.
Common stock Correct Ans - total amount paid in by stockholders
for the shares they purchase.
Comparative statements Correct Ans - A presentation of the
financial statements of a company for more than one year.
Corporation Correct Ans - A business organized as a separate legal
entity having ownership divided into transferable shares of stock.
Dividends Correct Ans - Payments of cash from a corporation to its
stockholders.
, Expenses Correct Ans - The cost of assets consumed or services
used in the process of generating revenues.
Income statement Correct Ans - A financial statement that presents
the revenues and expenses and resulting net income or net loss of a
company for a specific period of time.
Liabilities Correct Ans - The debts and obligations of a business.
Liabilities represent the amounts owed to creditors.
Management discussion and analysis (MD&A) Correct Ans - A
section of the annual report that presents management's views on the
company's ability to pay near-term obligations, its ability to fund
operations and expansion, and its results of operations.
Net income Correct Ans - The amount by which revenues exceed
expenses.
Net Income = Correct Ans - Revenues . Expenses
Net loss Correct Ans - The amount by which expenses exceed
revenues.
Net Loss = Correct Ans - Expenses > Revenue
Notes to the financial statements Correct Ans - Notes that clarify
information presented in the financial statements, as well as expand upon
it where additional detail is needed.
Partnership Correct Ans - A business owned by two or more
persons associated as partners.
Retained earnings Correct Ans - The amount of net income retained
in the corporation.
Retained earnings statement Correct Ans - A financial statement
that summarizes the amounts and causes of changes in retained earnings
for a specific period of time.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$17.47. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73314 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now