Page | 1
A100 2026 LATEST QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
Financial accounting - correct answer -the records and reports
available to people outside of a company
3 type of business activity - correct answer -1) financing
2) investing
3) operating
Ways equity investor makes money on investment: - correct
answer -1) receiving dividends from the company
2) selling their stock when price increased
Maturity date - correct answer -the date by which the loan is to
be repaid
Collateral - correct answer -assets that are pledged by the
borrower to the creditor if the borrower is not able to repay the
item
, Page | 2
Equity vs debt investors - correct answer -equity- become owner
of company. Will benefit if the company is successful
Debt- will be repaid for sure (principal and interest but do not
participate)
Fixed assets - correct answer -land buildings equipment
1) likely to last a number of years
2)expected to be used in operations of the business and not sold
(inventory)
Operating activity - correct answer -what is neither financing nor
investing
Transactions related to running the business and marketing the
company's product
Ex: salaries and wages, rent, utilities, insurance, purchase of
goods to be resold
Leftover cash? Options after debt is paid - correct answer -1)
invest in more fixed assets
2) pay dividends
A100 2026 LATEST QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
Financial accounting - correct answer -the records and reports
available to people outside of a company
3 type of business activity - correct answer -1) financing
2) investing
3) operating
Ways equity investor makes money on investment: - correct
answer -1) receiving dividends from the company
2) selling their stock when price increased
Maturity date - correct answer -the date by which the loan is to
be repaid
Collateral - correct answer -assets that are pledged by the
borrower to the creditor if the borrower is not able to repay the
item
, Page | 2
Equity vs debt investors - correct answer -equity- become owner
of company. Will benefit if the company is successful
Debt- will be repaid for sure (principal and interest but do not
participate)
Fixed assets - correct answer -land buildings equipment
1) likely to last a number of years
2)expected to be used in operations of the business and not sold
(inventory)
Operating activity - correct answer -what is neither financing nor
investing
Transactions related to running the business and marketing the
company's product
Ex: salaries and wages, rent, utilities, insurance, purchase of
goods to be resold
Leftover cash? Options after debt is paid - correct answer -1)
invest in more fixed assets
2) pay dividends
