ACC 231 Quiz 2 Question and answers
verified to pass 2025/2026
What are notes receivable? - correct answer ✔Written promises (a formal document) that require
another party to pay the business under specified conditions (amount, time, interest)
What are accounts receivable? - correct answer ✔The accounts receivable consists of future payments
owed to the business.
What are accounts payable? - correct answer ✔The opposite of accounts receivable. It's the amount of
money that the company has to pay another business.
What are notes payable? - correct answer ✔The notes payable account includes the amounts the
business must pay because it signed notes promising to pay a future amount.
What are examples of assets - correct answer ✔-Cash
-Accounts Receivable
-Notes Receivable
-Inventory
-Prepaid expenses
-Film &Tv costs
-Investments
-Land
What are examples of liabilities? - correct answer ✔-Accounts payable
-Notes Payable
-Accrued Liabilities
, What are examples of stockholders Equity? - correct answer ✔Common stock
retained earnings
Dividends
Revenue
Expenses
How does revenue relate to stockholders equity? - correct answer ✔Revenue is the increase in
stockholders equity that result from delivering goods/services to customers
How do expenses relate to stockholders equity? - correct answer ✔Expenses decrease stockholders
equity due to the cost of operating the business
Transaction - correct answer ✔any event that has a financial impact on the business and can be
measured reliably
Account - correct answer ✔A record of all of the changes that have happened to a particular asset,
liability, or to stockholders equity during a period of time.
Accrued Liabilities - correct answer ✔An expense you haven't paid for yet
Ledger - correct answer ✔the book of accounts and their balances
Posting - correct answer ✔the process of copying amounts from the journal to the ledger
Chart of Accounts - correct answer ✔A list of a company's accounts and their account numbers
verified to pass 2025/2026
What are notes receivable? - correct answer ✔Written promises (a formal document) that require
another party to pay the business under specified conditions (amount, time, interest)
What are accounts receivable? - correct answer ✔The accounts receivable consists of future payments
owed to the business.
What are accounts payable? - correct answer ✔The opposite of accounts receivable. It's the amount of
money that the company has to pay another business.
What are notes payable? - correct answer ✔The notes payable account includes the amounts the
business must pay because it signed notes promising to pay a future amount.
What are examples of assets - correct answer ✔-Cash
-Accounts Receivable
-Notes Receivable
-Inventory
-Prepaid expenses
-Film &Tv costs
-Investments
-Land
What are examples of liabilities? - correct answer ✔-Accounts payable
-Notes Payable
-Accrued Liabilities
, What are examples of stockholders Equity? - correct answer ✔Common stock
retained earnings
Dividends
Revenue
Expenses
How does revenue relate to stockholders equity? - correct answer ✔Revenue is the increase in
stockholders equity that result from delivering goods/services to customers
How do expenses relate to stockholders equity? - correct answer ✔Expenses decrease stockholders
equity due to the cost of operating the business
Transaction - correct answer ✔any event that has a financial impact on the business and can be
measured reliably
Account - correct answer ✔A record of all of the changes that have happened to a particular asset,
liability, or to stockholders equity during a period of time.
Accrued Liabilities - correct answer ✔An expense you haven't paid for yet
Ledger - correct answer ✔the book of accounts and their balances
Posting - correct answer ✔the process of copying amounts from the journal to the ledger
Chart of Accounts - correct answer ✔A list of a company's accounts and their account numbers
