Accounting 200 Exam 1
Sample Questions And
Correct Answers 2025-2026
Graded A +
account payable - ANS-a liability backed by the general reputation and credit
standing at the debtor.
accounting - ANS-the information system that measures business activities,
processes that information into reports and financial statements, and
communicates the results to decision makers.
accounting equation - ANS-assets=liabilities+owners equity
asset - ANS-an economic resource that is expected to be of benefit in the future.
balance sheet - ANS-list of an entity's assets, liabilities, and owner's equity as of
a specific date. also called the statement of financial position.
board of directors - ANS-group elected by the stockholders to set policy for a
corporation and to appoint its officers.
capital - ANS-another name for the owner's equity of a business
cash - ANS-money and any medium of exchange that a bank accepts at face
value.
common stock - ANS-the most basic form of capital stock.
, continuity (going concern) assumption - ANS-holds that the entity will remain in
operation for the foreseeable future.
corporation - ANS-a business owned by stockholders. It is a legal entity, an
"artificial person" in the eyes of the law.
current asset - ANS-an asset that is expected to be converted to cash, sold, or
consumed during the next 12 months or within the business's normal operating
cycle if longer than a year.
current liability - ANS-a debt due to be paid within one year or within the entity's
operating cycle if the cycle is longer than a year.
deficit - ANS-negative balance in retained earnings caused by net losses over a
period of years.
dividends - ANS-distributions (usually cash) by a corporation to its stockholders.
entity - ANS-an organization or a section of an organization that, for accounting
purposes, stands apart from other organizations and individuals as a separate
economic unit.
expenses - ANS-decrease in retained earnings that results from operations; the
cost of doing business;opposite of revenues.
fair value - ANS-the amount that a business could sell an asses for, or the
amount that a business could pay to settle a liability.
financial accounting - ANS-the branch of accounting that provides information to
people outside the firm.
financial statements - ANS-business documents that report financial information
about a business entity to decision makers.
financial activities - ANS-activities that obtain from investors and creditors the
cash needed to launch and sustain the business; a section of the statement of
cash flows.
Sample Questions And
Correct Answers 2025-2026
Graded A +
account payable - ANS-a liability backed by the general reputation and credit
standing at the debtor.
accounting - ANS-the information system that measures business activities,
processes that information into reports and financial statements, and
communicates the results to decision makers.
accounting equation - ANS-assets=liabilities+owners equity
asset - ANS-an economic resource that is expected to be of benefit in the future.
balance sheet - ANS-list of an entity's assets, liabilities, and owner's equity as of
a specific date. also called the statement of financial position.
board of directors - ANS-group elected by the stockholders to set policy for a
corporation and to appoint its officers.
capital - ANS-another name for the owner's equity of a business
cash - ANS-money and any medium of exchange that a bank accepts at face
value.
common stock - ANS-the most basic form of capital stock.
, continuity (going concern) assumption - ANS-holds that the entity will remain in
operation for the foreseeable future.
corporation - ANS-a business owned by stockholders. It is a legal entity, an
"artificial person" in the eyes of the law.
current asset - ANS-an asset that is expected to be converted to cash, sold, or
consumed during the next 12 months or within the business's normal operating
cycle if longer than a year.
current liability - ANS-a debt due to be paid within one year or within the entity's
operating cycle if the cycle is longer than a year.
deficit - ANS-negative balance in retained earnings caused by net losses over a
period of years.
dividends - ANS-distributions (usually cash) by a corporation to its stockholders.
entity - ANS-an organization or a section of an organization that, for accounting
purposes, stands apart from other organizations and individuals as a separate
economic unit.
expenses - ANS-decrease in retained earnings that results from operations; the
cost of doing business;opposite of revenues.
fair value - ANS-the amount that a business could sell an asses for, or the
amount that a business could pay to settle a liability.
financial accounting - ANS-the branch of accounting that provides information to
people outside the firm.
financial statements - ANS-business documents that report financial information
about a business entity to decision makers.
financial activities - ANS-activities that obtain from investors and creditors the
cash needed to launch and sustain the business; a section of the statement of
cash flows.
