MGA 201 Final Exam Study Guide: 150+ Questions and Answers, Exams of Business Accounting

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MGA 201 Final Exam 150+ Questions 2024 - 2025

Basic Accounting Equation - ANS—Assets= Liabililies + Stockholders Equity Corporations — ANS—Scparate entity from both a legal and accounting perspective. Owners of corporations (stockholders) are not personally responsible for debts of the corporation Separate Entity Assumption — ANS-requires that a business's financial reports include only the activities of the business and not those of ils slockholders Asscts — ANS—Resources controlled by the company that have measurable value and are expected to provide future benefits. E.x. cash, supplies, equiptment Liabilities - ANS—Amounts owed by the business to creditors. E.x. notes payable, accounts payable Stockholders Equity -— ANS-Owners claim to the business resources, E.x, common stock, relained earnings Revenues, Expenses, and Net Income — ANS-Revenues — Expenses = Net Income Revenues — ANS—Sales of goods or services lo cuslomers. Measured al the amount the business charges the cuslomer. Expenses — ANS-The costs of business necessary lo earn revenues, including wages to employees, advertising, and utilitics Dividends — ANS—Distribulions of a company's earnings lo ils stockholders as a return on their investment, NOT and expense Financial Statements Prepared in this Order - ANS—Income Statement — Stalement of Retained Earnings — Balance Sheet — Statement of Cash Flows The Income Statement — ANS—Reports the amount of revenues less expenses for a period of time.