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FSA Ch 1-3 Exam With 100% Correct And Verified Answers
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FSA Ch 1-3 Exam With 100% Correct And Verified Answers
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FSA Ch 1-3 Exam With 100% Correct And Verified AnswersInternational Accounting Standards Board (IASB) oversees the development of ______ - Correct Answer-IFRS - International Financial Reporting Standards
Balance sheet accounts are called ________ accounts in that they carry over from period to period. - Correct Answer-permanent
Balance sheet reports the assets, liabilities, and equity at a __________. - Correct Answer-at a point in time
When a cost creates an _______ ___________ , we record the cost in the income statement as an ________. - Correct Answer-immediate benefit
expense
When a cost creates a ________ _________ _________ , we record it on the balance sheet as an _____. - Correct Answer-future economic benefit
asset.
When an asset is used up, the asset's cost is transferred from _______ _______ the to the ______ _______, where it is recognized as an expense. - Correct Answer-balance sheet income statement
Costs can be ______ and not _________. - Correct Answer-capitalized
__________ that can be capitalized are assets and go into the balance sheet; while ________ that cannot be capitalized are _________ and go into the income statmentes.
- Correct Answer-Costs
expeneses
An asset must possess two characteristics to be reported on the balance sheet.
1.It must be ________ (or controlled) by the company.
2.It must confer expected______ _____ ______ that result from a past transaction or event. - Correct Answer-owned
future economic benefits
Investments with an original maturity of 90 days or less is called ________ _______. - Correct Answer-cash equivalents
Short-term investments are marketable securities and other investments the company expects to ________ of in the short run. - Correct Answer-dispose Prepaid expenses is the costs paid _____ ______ for rent, insurance, advertising, and other services that are listed as ______ assets on the BS. - Correct Answer-in advance
current
Current assets include - Correct Answer-cash, marketable securities, accounts receivable, inventories, and prepaid expenses
Most assets are reported at their original acquisition costs, or _____ costs, and not at their current market values. - Correct Answer-historical
The __ASB and ___ASB work together cooperatively, often undertaking joint projects. Consequently, IFRS and U.S. GAAP are generally more _____ than different for most transactions. - Correct Answer-I / F
alike
Balance Sheet ( beginning of period)
+ Statements of Cash Flows
+ Statements of Stockholder's Equity
+ Income Statement
=> Balance Sheet (end-of period)
The three statements are zero out at the end of the period and the balance sheet carry over to the next. - Correct Answer-
Balance Sheet is reported a company's financial position at a point ____ time. - Correct Answer-in
Resources are the assets what the company ___. Sources are the asset _____ from stockholders or from outside of the company. - Correct Answer-owns
financed
Owner financing refers to the finance from the company's _____. Non-owner financing refers to the finance from ______ of the company such as banks, other creditors, or suppliers. - Correct Answer-stockholders
outside
Investing = Nonowner Financing + Owner Financing
The accounting equation works for all companies at all points in time. - Correct Answer-
Investing = Assets Nonowner Financing = Liabilities
Owner Financing = Stockholders' Equity - Correct Answer-
Investing Activities are represented by the company's _____. Assets are listed on the balance sheet in order of their nearness to cash. - Correct Answer-assets
Financing Activities combine owner (or equity) and non owner financing (liabilities or debt) activities. - Correct Answer-
Owner financing has two components: ____ contributed to the company by its owners, and ______ retained by the company. - Correct Answer-Resources
profits
Income Statement is reported _____ a period of time and lists amounts for its top line ____ (also called sales) and its _____. - Correct Answer-over revenues
expenses
Revenues less expenses equals the bottom-line _____ amount (also called profit or earnings). - Correct Answer-net income
The first Expense Line below sales is _____, which represents the amount paid to ____ or _____ the goods (inventories) that it sold. - Correct Answer-COGS
purchase
manufacture
Gross profit = Revenues - Cost of goods sold
the gross profit must big enough to paid the cogs and SG&A expense. - Correct Answer-
Selling, general, and administrative expenses (SG&A) —the overhead of the company include Salaries, Marketing costs, Occupancy costs, HR and IT costs, and All the other operating expenses the company incurs. - Correct Answer-
The ability of companies to create barriers to competitive pressure, either by _____ protection, effective ______, etc. is a key factor in determining their level of profitability. - Correct Answer-patent
marketing
Statement of Stockholders' Equity reports on year-over-year changes in the equity accounts that are reported on the balance sheet - Correct Answer-
Equity accounts includes contributed ______, retained _____ , and Other equity. - Correct Answer-capital
earnings
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