Acct 101 Exam 1 questions n answers
2025/2026 passed
Identify the users of financial information - CORRECT ANSWER ✔✔banks, owners, suppliers,
customers
Entity has its own separate - CORRECT ANSWER ✔✔identity
An entity whose entire purpose is to produce a profit for its owners is an - CORRECT ANSWER
✔✔economic entity
Funds taken from owner for personal use is - CORRECT ANSWER ✔✔withdrawals
Income statement shows - CORRECT ANSWER ✔✔revenue, expenses, net income
Balance sheet shows - CORRECT ANSWER ✔✔assets, liabilities, owner's equity
Statement of Owner's Equity - CORRECT ANSWER ✔✔A summary of the changes in owner's
equity that have occurred during a specific period of time, such as a month or a year.
Which is true in the preparation of financial statements - CORRECT ANSWER ✔✔net income
from the income statement is placed into statement of owner's equity
the company or individuals that amounts are owed to are - CORRECT ANSWER ✔✔creditors
Fundamental Accounting Equation - CORRECT ANSWER ✔✔Assets = Liabilities + Owner's Equity
, revenue - CORRECT ANSWER ✔✔The amount of money that a company actually receives from
sales
expenses - CORRECT ANSWER ✔✔the cost that a business incurs in order to operate
accounting is called - CORRECT ANSWER ✔✔the language of business
Accounting system - CORRECT ANSWER ✔✔A process designed to accumulate, classify and
summarize financial data
Certified public accountant (CPA) - CORRECT ANSWER ✔✔An independent accountant who
provides accounting services to the public for a fee
accounting - CORRECT ANSWER ✔✔The process by which financial information about a
business is recorded, classified, summarized, interpreted, and communicated to owners,
managers, and other interested parties
bookkeeper - CORRECT ANSWER ✔✔someone who records the transactions of a business
accountant - CORRECT ANSWER ✔✔A person who plans, summarizes, analyzes, and interprets
accounting information.
accounting clerk - CORRECT ANSWER ✔✔An accounting worker who processes routine details
about accounting transactions.
Which statements are true about SEC - CORRECT ANSWER ✔✔SEC has final say on financial
accounting issues faced by publicly traded companies, can suspend trading of company's shares
2025/2026 passed
Identify the users of financial information - CORRECT ANSWER ✔✔banks, owners, suppliers,
customers
Entity has its own separate - CORRECT ANSWER ✔✔identity
An entity whose entire purpose is to produce a profit for its owners is an - CORRECT ANSWER
✔✔economic entity
Funds taken from owner for personal use is - CORRECT ANSWER ✔✔withdrawals
Income statement shows - CORRECT ANSWER ✔✔revenue, expenses, net income
Balance sheet shows - CORRECT ANSWER ✔✔assets, liabilities, owner's equity
Statement of Owner's Equity - CORRECT ANSWER ✔✔A summary of the changes in owner's
equity that have occurred during a specific period of time, such as a month or a year.
Which is true in the preparation of financial statements - CORRECT ANSWER ✔✔net income
from the income statement is placed into statement of owner's equity
the company or individuals that amounts are owed to are - CORRECT ANSWER ✔✔creditors
Fundamental Accounting Equation - CORRECT ANSWER ✔✔Assets = Liabilities + Owner's Equity
, revenue - CORRECT ANSWER ✔✔The amount of money that a company actually receives from
sales
expenses - CORRECT ANSWER ✔✔the cost that a business incurs in order to operate
accounting is called - CORRECT ANSWER ✔✔the language of business
Accounting system - CORRECT ANSWER ✔✔A process designed to accumulate, classify and
summarize financial data
Certified public accountant (CPA) - CORRECT ANSWER ✔✔An independent accountant who
provides accounting services to the public for a fee
accounting - CORRECT ANSWER ✔✔The process by which financial information about a
business is recorded, classified, summarized, interpreted, and communicated to owners,
managers, and other interested parties
bookkeeper - CORRECT ANSWER ✔✔someone who records the transactions of a business
accountant - CORRECT ANSWER ✔✔A person who plans, summarizes, analyzes, and interprets
accounting information.
accounting clerk - CORRECT ANSWER ✔✔An accounting worker who processes routine details
about accounting transactions.
Which statements are true about SEC - CORRECT ANSWER ✔✔SEC has final say on financial
accounting issues faced by publicly traded companies, can suspend trading of company's shares
