5 Written Questions

1. Regulations passed by Congress in 2002 to try to reduce unethical corporate behavior.
2. a report prepared by corporate management that presents financial information inculding financial statements, notes, a management discussion and analysis section, and an independent auditor's report
3. A financial statement that reports the assets and claims to those assets at a specific point in time
4. A business owned by two or more persons associated as partners.
5. the increase in assets that result from the sale of a product or service in the normal course of business.

5 Matching Questions

1. Net income
2. Management discussion and analysis (MD&A)
3. income statement
4. Statement of cash flows
5. expenses

1. a The amount by which revenues exceed expenses
2. b A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time.
3. c the cost of assets consumed or services used in the process of generating revenues
4. d 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
5. e 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.

5 Multiple Choice Questions

1. The information system that identifies, records, and communicates the economic events of an organization to interested users
   1. expenses
   2. Assets
   3. corporation
   4. Accounting
2. term used to describe the total amount paid in by stockholders for the shares they purchase
   1. corporation
   2. Accounting
   3. common stock
   4. Net income
3. Notes that clarify information presented in the financial statements, as well as expand upon it where additional detail is needed.
   1. income statement
   2. Notes to the financial statements
   3. Net income
   4. Retained earnings statement
4. Resources owned by a business
   1. expenses
   2. Assets
   3. Revenue
   4. dividends
5. Assets = Liabilities + Stockholders' Equity
   1. Accounting
   2. Balance Sheet
   3. corporation
   4. Basic accounting equation

5 True/False Questions

1. net loss → the amount by which expenses exceed revenues

   True        False

2. Certified Public Accountant (CPA) → Assets = Liabilities + Stockholders' Equity

   True        False

3. Retained earnings statement → A financial statement that summarizes the amounts and causes of changes in retained earnings for a specific period of time.

   True        False

4. Sole proprietorship → A business owned by two or more persons associated as partners.

   True        False

5. Auditor's report → a report prepared by corporate management that presents financial information inculding financial statements, notes, a management discussion and analysis section, and an independent auditor's report

   True        False