2025 ACC/290 Practice Exam
Questions with All Correct Answers
2026 Updated.
Accounting - Answer The information system that identifies records and communicates the
economic events of an organization to interested users
Annual report - Answer A report prepared by corporate management that presents financial
information including financial statements and management discussion and Analysis section
notes and an independent Auditor's report
Assets - Answer Resources owned by a business
Auditor's report - Answer A report prepared by an independent outside Auditors stating the
auditor's opinion as to the fairness of the presentation of the financial position and results of
operations and their conformance with generally accepted accounting principles
Balance sheet - Answer Define answer all statement that reports the assets and claims to
those assets at a specific point in time
Basic accounting equation - Answer Assets equals liabilities plus stockholders equity
Certified public accountant - Answer An individual who has met certain criteria and is thus
allowed to perform audits of Corporations
Common stock - Answer Term used to describe the total amount paid in by the stockholders
for the shares they purchase
Corporation - Answer A business organized as a separate legal entity owned by stockholders
Dividends - Answer Payments of cash from a corporation to its stockholders
Expenses - Answer The cost of assets consumed or Services used in the process of generating
revenues
, Liabilities - Answer Amounts owed to creditors in the form of debts and other
Management discussion and Analysis MD & A - Answer A section of the annual report that
presents Management's view on the company's ability to pay near-term obligations, its ability to
find operations and expansion, and its results of operations
Net income - Answer The amount by which revenues exceed expenses
Net loss - Answer The amount which expenses exceed revenues
Note to financial statement - Answer Notes clarify information presented in the financial
statements and provide additional detail
Partnership - Answer A business owned by two or more persons Associated as partners
Retained earnings - Answer The amount of net income retained in the corporation
Retained earnings statement - Answer The financial statement that summarizes the amounts
and causes of changes in retained earnings for a specific time period
Revenue - Answer The increase in assets or decrease in liabilities resulting from the sale of
goods or the performance of services in the normal course of business
Sarbanes-oxley Act Sox - Answer Regulations passed by Congress to reduce unethical
corporate Behavior
Sole proprietorship - Answer A business owned by one person
Statement of cash flows - Answer The financial statement that provides financial information
about the cash receipts and cash payments of a business for a specific period of time
Stockholders equity - Answer The owners claim to assets
Questions with All Correct Answers
2026 Updated.
Accounting - Answer The information system that identifies records and communicates the
economic events of an organization to interested users
Annual report - Answer A report prepared by corporate management that presents financial
information including financial statements and management discussion and Analysis section
notes and an independent Auditor's report
Assets - Answer Resources owned by a business
Auditor's report - Answer A report prepared by an independent outside Auditors stating the
auditor's opinion as to the fairness of the presentation of the financial position and results of
operations and their conformance with generally accepted accounting principles
Balance sheet - Answer Define answer all statement that reports the assets and claims to
those assets at a specific point in time
Basic accounting equation - Answer Assets equals liabilities plus stockholders equity
Certified public accountant - Answer An individual who has met certain criteria and is thus
allowed to perform audits of Corporations
Common stock - Answer Term used to describe the total amount paid in by the stockholders
for the shares they purchase
Corporation - Answer A business organized as a separate legal entity owned by stockholders
Dividends - Answer Payments of cash from a corporation to its stockholders
Expenses - Answer The cost of assets consumed or Services used in the process of generating
revenues
, Liabilities - Answer Amounts owed to creditors in the form of debts and other
Management discussion and Analysis MD & A - Answer A section of the annual report that
presents Management's view on the company's ability to pay near-term obligations, its ability to
find operations and expansion, and its results of operations
Net income - Answer The amount by which revenues exceed expenses
Net loss - Answer The amount which expenses exceed revenues
Note to financial statement - Answer Notes clarify information presented in the financial
statements and provide additional detail
Partnership - Answer A business owned by two or more persons Associated as partners
Retained earnings - Answer The amount of net income retained in the corporation
Retained earnings statement - Answer The financial statement that summarizes the amounts
and causes of changes in retained earnings for a specific time period
Revenue - Answer The increase in assets or decrease in liabilities resulting from the sale of
goods or the performance of services in the normal course of business
Sarbanes-oxley Act Sox - Answer Regulations passed by Congress to reduce unethical
corporate Behavior
Sole proprietorship - Answer A business owned by one person
Statement of cash flows - Answer The financial statement that provides financial information
about the cash receipts and cash payments of a business for a specific period of time
Stockholders equity - Answer The owners claim to assets
