UHD BCAT Exam Questions And Answers
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Financial accounting - answera system of processing financial data for a company with the
purpose of producing a set of financial statements which investors and creditors can use to
make financial decisions.
financial statements - answera short rep...
Financial accounting - answer✔a system of processing financial data for a company with the
purpose of producing a set of financial statements which investors and creditors can use to
make financial decisions.
financial statements - answer✔a short report that disclose information about various aspects of
a company, including the balance sheet, income statement and cash flow statement
Asset - answer✔anything of value owned by the company
Balance sheet - answer✔measures the company's financial position at a particular point in time
by listing assets and liabilities and showing the difference as owners equity
liability - answer✔an obligation to either pay out assets or perform services
owners equity - answer✔residual ownership of the assets (assets - liabilities)
income statement - answer✔measures company's performance over a given period of time
Accural Accounting - answer✔A type of accounting that recognizes incomes when they are
earned and expenses when they are incurred, rather than when they are received or paid.
Expenses - answer✔cost of goods sold or serviced performed
four basics of financial statements - answer✔income statement (statement of operations)
statement of retained earnings
Balance sheet
Statement of cash flows
Define accounting - answer✔The information system that identifies, records, and
communicates the economic events of an organization to interested users.
what are the four forms of businesses - answer✔proprietorship, partnership, llc, and
corporation
What is a proprietorship - answer✔It is a business owned by one person.
What is a partnership? - answer✔An association of two or more persons to carry on a business
for profit as co-owners
what is a limited-liability company - answer✔one in which the business is liable for the
company's debts. it can have one owner or many owners.
what is a corporation - answer✔a corporation is a business owned by the stockholders or
shareholders who own stock representing shares of ownership in the corporation.
What is GAAP? - answer✔Generally Accepted Accounting Principles by the Financial Accounting
Standards Board (FASB)
What is IFRS - answer✔International Financial Reporting Standards
what is an entity - answer✔any organization or person that stands apart from other
organizations and individuals as a separate economic unit.
what is the accounting equation - answer✔Assets = Liabilities + Owner's Equity
Assets= Liabilities + Stockholder's Equity
Assets = Liabilities + Paid-in capital + Retained earnings
Owners equity = Assets = liabilities
Define revenue - answer✔revenue are inflows of resources that increase retained earnings by
delivering goods or services to customers
define dividends - answer✔payments of cash from a corporation to its stockholders
what is net income - answer✔when total expenses exceed total revenues
what is net loss - answer✔When total expenses exceed total revenues
What is the net income formula? - answer✔Revenue - Expenses = Net Income
how to measure the gross profit - answer✔Service revenue - cost of service
what are the two main categories of assets - answer✔current and long-term assets
examples of long-term assets - answer✔property, plant, equipment, long-term investments,
and intangible assets
what are intangible assets - answer✔assets that have no physical substance but still represent
resources that have a future benefit to the company.
examples of stockholder equity - answer✔common stock, additional paid-in capital, retained
earnings, treasury stock, accumulated other comprehensive income
three factors that influence business and accounting decisions - answer✔economics, legal, and
ethical
what are the different types of assets - answer✔cash, accounts receivable, inventory, prepaid
expenses, investments
examples of liability - answer✔accounts payable, notes payable, accrued liabilities.
what is the current ratio equation? - answer✔current assets / current liabilities
Cost of Goods Sold Equation - answer✔CGS = Beginning Inventory + Purchases of merchandise -
Ending Inventory
Gross Profit Equation - answer✔sales = cost of goods sold = gross profit
Gross profit margin - answer✔Gross profit / sales
positive economics - answer✔the approach to economic study involving the observation of
economic choices and the prediction of economic events
normative economics - answer✔The part of economics involving value judgments about what
the economy should be like; focused on which economic goals and policies should be
implemented; policy economics.
Define comparative advantage - answer✔the ability of an individual or group to carry out a
particular economic activity (such as making a specific product) more efficiently than another
activity.
Define absolute advantage - answer✔the ability to produce a good using fewer inputs than
another producer
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