ACC 231- EXAM 1(CH 1-4) Question
and answers verified to pass
2025/2026
Assets - correct answer ✔a company's resources—things the company owns. Examples of assets
include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings,
equipment, and goodwill.
Liabilities - correct answer ✔a company's obligations—amounts the company owes. Examples of
liabilities include notes or loans payable, accounts payable, salaries and wages payable, interest payable,
and income taxes payable
Stockholders' Equity - correct answer ✔reports the amounts invested into the company by the owners
plus the cumulative net income of the company that has not been withdrawn or distributed to the
owners.
Balance Sheet - correct answer ✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
income statement - correct answer ✔covers a time period or over a time interval. reports a company's
revenues and expenses and the resulting net income.
assets examples - correct answer ✔Cash
Accounts Receivable - a customer's promise to pay
Prepaid Expenses - (ie prepaid rent or prepaid insurance)
Supplies
Notes Receivable-similar to Accounts Receivable but the customer/employee signs a note.
Equipment
and answers verified to pass
2025/2026
Assets - correct answer ✔a company's resources—things the company owns. Examples of assets
include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings,
equipment, and goodwill.
Liabilities - correct answer ✔a company's obligations—amounts the company owes. Examples of
liabilities include notes or loans payable, accounts payable, salaries and wages payable, interest payable,
and income taxes payable
Stockholders' Equity - correct answer ✔reports the amounts invested into the company by the owners
plus the cumulative net income of the company that has not been withdrawn or distributed to the
owners.
Balance Sheet - correct answer ✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
income statement - correct answer ✔covers a time period or over a time interval. reports a company's
revenues and expenses and the resulting net income.
assets examples - correct answer ✔Cash
Accounts Receivable - a customer's promise to pay
Prepaid Expenses - (ie prepaid rent or prepaid insurance)
Supplies
Notes Receivable-similar to Accounts Receivable but the customer/employee signs a note.
Equipment
