ACCOUNTING 200 EXAM 1 UTK 60 QUESTIONS &
CORRECT ANSWERS LATEST 2026
business - ANSWER-is an organization that provides goods (tangible) and/or
services for the purpose of making a profit for its owners
what are the three types of businesses? - ANSWER-service, merchandising,
manufacturing
service business - ANSWER-Provides services to customers (human knowledge,
talent, or strength). Does not sell goods
merchandising business - ANSWER-buys finished products and resells them to
individuals or other businesses. (like target or walmart)
manufacturing business - ANSWER-make the products they sell. takes raw
materials to convert to a final product. such as car manufacturing.
which of the following would be considered an internal stakeholder? - ANSWER-
employees
businesses that do not sell goods, but render services to customers can operate in
which form? - ANSWER-any of these: sole proprietorship, partnership,
corporation.
, how do nonprofit organizations differ from For-profits companies? - ANSWER-
their mission is to fulfill a need.
a profit making business operating as a separate legal entity & in which ownership
is divided into shares of stock. - ANSWER-corporation
accounting equation - ANSWER-Equity=Assets-Liabilities
which financial statement presents a summary of the revenues & expenses of a
business for a specific period of time? - ANSWER-income statement
which organization is responsible for creating accounting and financial standards
in the U.S.? - ANSWER-Financial Accounting Standards Boards (FASB)
The purpose of the Securities and Exchange Commission is to: - ANSWER-
Maintain orderly markets & protect investors.
T/F: Representational Faithfulness is a goal of Accounting Information. -
ANSWER-TRUE
The resources owned by a business are called? - ANSWER-Assets
Inflows of assets from delivering goods & services are called? - ANSWER-
Revenues
the portion of a company's profits that are distributed to owners is called? -
ANSWER-Dividends
CORRECT ANSWERS LATEST 2026
business - ANSWER-is an organization that provides goods (tangible) and/or
services for the purpose of making a profit for its owners
what are the three types of businesses? - ANSWER-service, merchandising,
manufacturing
service business - ANSWER-Provides services to customers (human knowledge,
talent, or strength). Does not sell goods
merchandising business - ANSWER-buys finished products and resells them to
individuals or other businesses. (like target or walmart)
manufacturing business - ANSWER-make the products they sell. takes raw
materials to convert to a final product. such as car manufacturing.
which of the following would be considered an internal stakeholder? - ANSWER-
employees
businesses that do not sell goods, but render services to customers can operate in
which form? - ANSWER-any of these: sole proprietorship, partnership,
corporation.
, how do nonprofit organizations differ from For-profits companies? - ANSWER-
their mission is to fulfill a need.
a profit making business operating as a separate legal entity & in which ownership
is divided into shares of stock. - ANSWER-corporation
accounting equation - ANSWER-Equity=Assets-Liabilities
which financial statement presents a summary of the revenues & expenses of a
business for a specific period of time? - ANSWER-income statement
which organization is responsible for creating accounting and financial standards
in the U.S.? - ANSWER-Financial Accounting Standards Boards (FASB)
The purpose of the Securities and Exchange Commission is to: - ANSWER-
Maintain orderly markets & protect investors.
T/F: Representational Faithfulness is a goal of Accounting Information. -
ANSWER-TRUE
The resources owned by a business are called? - ANSWER-Assets
Inflows of assets from delivering goods & services are called? - ANSWER-
Revenues
the portion of a company's profits that are distributed to owners is called? -
ANSWER-Dividends
