CBAD 201- UNIT 1 EXAM QUESTIONS
AND ANSWERS GRADED A+ 2025/2026
What is accounting? ANS An information system that measures business activities, processes
data into financial statements, and communicates results to decision makers.
What is bookkeeping? ANS The mechanical part of accounting.
What is the accounting cycle? ANS The process by which a company's financial statements
are prepared.
What are the two types of accounting? ANS Financial Accounting and Managerial Accounting.
Who uses financial accounting? ANS Investors, creditors, government agencies, and the
public.
What is a proprietorship? ANS A business owned by a single owner, personally liable for all
business debts.
What is a partnership? ANS A business owned by two or more parties, where income and
losses flow through to partners.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
AND ANSWERS GRADED A+ 2025/2026
What is accounting? ANS An information system that measures business activities, processes
data into financial statements, and communicates results to decision makers.
What is bookkeeping? ANS The mechanical part of accounting.
What is the accounting cycle? ANS The process by which a company's financial statements
are prepared.
What are the two types of accounting? ANS Financial Accounting and Managerial Accounting.
Who uses financial accounting? ANS Investors, creditors, government agencies, and the
public.
What is a proprietorship? ANS A business owned by a single owner, personally liable for all
business debts.
What is a partnership? ANS A business owned by two or more parties, where income and
losses flow through to partners.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
