FINANCIAL ACCOUNTING EXAM WITH VERIFIED SOLUTIONS
2026 #3
Creditors - correct answer persons or entities to whom a company owes money
Amount owed to creditors - correct answer liabilities
Note payable - correct answer liability to the bank
Bonds payable - correct answer debt securities sold to investors that must be repaid at
a particular date some years in the future
Common stock - correct answer the total amount paid in by stockholders for the shares
they purchase
Dividends - correct answer payments of cash from a corporation to its stockholders
Assets - correct answer resources owned by a business
Revenue - correct answer the increase in assets or decrease in liabilities resulting from
the sale of goods or the performance of services in the normal course of business
Supplies - correct answer assets used in day-to-day operations
Inventory - correct answer assets that are goods available for future sales to customers
Account receivable - correct answer the right to receive money in the future
Expenses - correct answer the cost of assets consumed or services used in the process
of generating revenues
Accounts payable - correct answer the obligation to pay for goods
Income statement - correct answer to show how successfully your business performed
during a period of time, you report its revenues and expenses and show net income or
loss for a period of time
Retained earnings statement - correct answer to indicate how much previous income
was distributed to you and the owners of your business in the form of dividends in a
specific period of time, and how much was retained in the business to allow for future
growth
Balance sheet - correct answer to present a picture at a point in time of what your
business owns (assets) and what it owes (liabilities)
2026 #3
Creditors - correct answer persons or entities to whom a company owes money
Amount owed to creditors - correct answer liabilities
Note payable - correct answer liability to the bank
Bonds payable - correct answer debt securities sold to investors that must be repaid at
a particular date some years in the future
Common stock - correct answer the total amount paid in by stockholders for the shares
they purchase
Dividends - correct answer payments of cash from a corporation to its stockholders
Assets - correct answer resources owned by a business
Revenue - correct answer the increase in assets or decrease in liabilities resulting from
the sale of goods or the performance of services in the normal course of business
Supplies - correct answer assets used in day-to-day operations
Inventory - correct answer assets that are goods available for future sales to customers
Account receivable - correct answer the right to receive money in the future
Expenses - correct answer the cost of assets consumed or services used in the process
of generating revenues
Accounts payable - correct answer the obligation to pay for goods
Income statement - correct answer to show how successfully your business performed
during a period of time, you report its revenues and expenses and show net income or
loss for a period of time
Retained earnings statement - correct answer to indicate how much previous income
was distributed to you and the owners of your business in the form of dividends in a
specific period of time, and how much was retained in the business to allow for future
growth
Balance sheet - correct answer to present a picture at a point in time of what your
business owns (assets) and what it owes (liabilities)
