ACC100 EXAM QUESTIONS AND
ANSWERS GRADED A+ 2026
What is a sole proprietorship? - ANS Single owner
What is a partnership? - ANS Two or more owners
What is a corporation? - ANS Many owners, can issue shares/bonds
What are non-business entities purpose? - ANS Other than generating income
What are financing activities? - ANS Ways a company gets their money
What is a creditor? - ANS Someone the company owes money to
What are investing activities? - ANS Doing something with future economic benefit
What are operating activities? - ANS Day-to-day costs
If something comes into the company as an investing activity it goes out as a? - ANS Investing
activity
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Who are the users of accounting info? (2) - ANS Internal and External users
What is an external user? - ANS Shareholders, creditors
What is an internal user? - ANS Managers
What is the economic entity concept? - ANS Personal accounts separate from company
accounts
What is the cost principle? - ANS Record assets for what you paid for them
What is the going concern? - ANS Assumption an entity is not in liquidation
What are the 5 qualitative characteristics? - ANS Comparability, Relevance, Understandability,
Comparability, Reliability
What is comparability? (qualitative characteristics) - ANS Able to compare two companies
What is relevance? (qualitative characteristics) - ANS Is the info relevant and up to date
What is understandability? (qualitative characteristics) - ANS Is the info understandable to
someone needing the info
What is consistency? (qualitative characteristics) - ANS Compare financial periods in one
company
What is reliability? (qualitative characteristics) - ANS Info is verifiable, neutral, and
represented faithfully
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
ANSWERS GRADED A+ 2026
What is a sole proprietorship? - ANS Single owner
What is a partnership? - ANS Two or more owners
What is a corporation? - ANS Many owners, can issue shares/bonds
What are non-business entities purpose? - ANS Other than generating income
What are financing activities? - ANS Ways a company gets their money
What is a creditor? - ANS Someone the company owes money to
What are investing activities? - ANS Doing something with future economic benefit
What are operating activities? - ANS Day-to-day costs
If something comes into the company as an investing activity it goes out as a? - ANS Investing
activity
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Who are the users of accounting info? (2) - ANS Internal and External users
What is an external user? - ANS Shareholders, creditors
What is an internal user? - ANS Managers
What is the economic entity concept? - ANS Personal accounts separate from company
accounts
What is the cost principle? - ANS Record assets for what you paid for them
What is the going concern? - ANS Assumption an entity is not in liquidation
What are the 5 qualitative characteristics? - ANS Comparability, Relevance, Understandability,
Comparability, Reliability
What is comparability? (qualitative characteristics) - ANS Able to compare two companies
What is relevance? (qualitative characteristics) - ANS Is the info relevant and up to date
What is understandability? (qualitative characteristics) - ANS Is the info understandable to
someone needing the info
What is consistency? (qualitative characteristics) - ANS Compare financial periods in one
company
What is reliability? (qualitative characteristics) - ANS Info is verifiable, neutral, and
represented faithfully
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
