ACC 100 FINAL EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
What would a tax advisor care about? - ANS Are tax laws being followed
What would a marketing manager care about? - ANS What is expected revenue from a new
product
What would an auditor care about? - ANS Is the business following the accounting rules
What would suppliers care about? - ANS Will a business pay for purchases on time
What would a creditor (bank) care about? - ANS Does the business have enough cash to pay
interest
What would the shareholder (i.e. owner) care about? - ANS Does the business have enough
cash to pay dividends
What would the Canada Revenue Agency care about? - ANS What is the total taxable income
Qualitative characteristic: Faithful - ANS Truthful, meaning it is complete, true to life, free of
major errors, and unbiased
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Qualitative characteristic: Relevant - ANS Applicable or pertinent to your decision making,
helps you predict the future and/or confirm decisions you made in the past
Qualitative characteristic: Comparable - ANS Can compare the same business from year to
year (consistent) OR between two different businesses in the same industry
Qualitative characteristic: Verifiable - ANS Anyone looking at the information would
determine similar amounts or arrive at similar conclusions
Qualitative characteristic: Timely - ANS Information is provided quickly, before it loses its
usefulness
Qualitative characteristic: Understandable - ANS Classify (group), describe and present
information so it is clear and concise
Assumption: Separate entity - ANS Only the activities of the business are included in the
business's financial information. Personal activities are excluded (separate)
Assumption: Unit-of-measure - ANS All transactions must be reported using the same
monetary unit. Usually this is the monetary unit of the country the business's head office is
located in, even if the business has offices in many countries
Assumption: Going concern - ANS Businesses will continue operations well into the future
Assumption: Historic cost - ANS All purchases will initially be recorded at the amount that
was paid for them. There are a few exceptions
Assumption: Time period - ANS Information is broken into artificial time periods such as a
month, quarter or year, so that stakeholders can analyze and compare information to make
decisions
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS GRADED A+ 2025/2026
What would a tax advisor care about? - ANS Are tax laws being followed
What would a marketing manager care about? - ANS What is expected revenue from a new
product
What would an auditor care about? - ANS Is the business following the accounting rules
What would suppliers care about? - ANS Will a business pay for purchases on time
What would a creditor (bank) care about? - ANS Does the business have enough cash to pay
interest
What would the shareholder (i.e. owner) care about? - ANS Does the business have enough
cash to pay dividends
What would the Canada Revenue Agency care about? - ANS What is the total taxable income
Qualitative characteristic: Faithful - ANS Truthful, meaning it is complete, true to life, free of
major errors, and unbiased
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Qualitative characteristic: Relevant - ANS Applicable or pertinent to your decision making,
helps you predict the future and/or confirm decisions you made in the past
Qualitative characteristic: Comparable - ANS Can compare the same business from year to
year (consistent) OR between two different businesses in the same industry
Qualitative characteristic: Verifiable - ANS Anyone looking at the information would
determine similar amounts or arrive at similar conclusions
Qualitative characteristic: Timely - ANS Information is provided quickly, before it loses its
usefulness
Qualitative characteristic: Understandable - ANS Classify (group), describe and present
information so it is clear and concise
Assumption: Separate entity - ANS Only the activities of the business are included in the
business's financial information. Personal activities are excluded (separate)
Assumption: Unit-of-measure - ANS All transactions must be reported using the same
monetary unit. Usually this is the monetary unit of the country the business's head office is
located in, even if the business has offices in many countries
Assumption: Going concern - ANS Businesses will continue operations well into the future
Assumption: Historic cost - ANS All purchases will initially be recorded at the amount that
was paid for them. There are a few exceptions
Assumption: Time period - ANS Information is broken into artificial time periods such as a
month, quarter or year, so that stakeholders can analyze and compare information to make
decisions
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
