ACCOUNTING 101 – BASIC
ACCOUNTING QUESTIONS AND
ANSWERS | COMPREHENSIVE
ACCOUNTING STUDY GUIDE 2026|
GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep and Comprehensive Rationales Included
, (IFRS) International Financial Reporting Standards The rules or guidelines that guide International Financial Reporting. (p.g 4)
Paraprofessional accountants People who are qualified in accounting to assume the duties of a general
bookkeeper as well as some of the duties of a professional accountant under that
accountant's supervision. (p. 7)
Sarbanes-Oxley Act A U.S. federal law enacted as a response to a number of major corporate and
accounting scandals that establishes a wide range of rules related to the audit
environment and internal controls. (p. 9)
(SEC) Securities and Exchange Commission The agency responsible for regulating public companies traded on a U.S. Stock
Exchange. (p. 4)
Transaction An event directly affecting an economic entity that can be expressed in terms of
money and that must be recorded in the accounting records. (p. 3)
Owner's Equity Owner's right to or investment in the business. (p. 13)
Assets Cash, properties or things of value owned by an economic unit or business entity.
(p. 13)
Business entity A business enterprise, separate and distinct from the persons who supply the
assets it uses. (p. 13)
Creditor One to whom money is owed. (p. 14)
Capital The owner's investment, or equity, in an enterprise.
(p. 13)
Chart of Accounts The official list of accounts tailor-made for the business. (p. 22)
Liabilities Debts or amounts owed to creditors. (p. 14)
Revenues Amounts earned by a business (fees for services, income from sales, rent income,
interest earned for lending money).
Expenses The costs that relate to earning revenue (the costs of doing business); examples
are wages, rent, interest, and advertising. They may be paid in cash immediately or
at a future time (AP) (p.21)
ACCOUNTING QUESTIONS AND
ANSWERS | COMPREHENSIVE
ACCOUNTING STUDY GUIDE 2026|
GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep and Comprehensive Rationales Included
, (IFRS) International Financial Reporting Standards The rules or guidelines that guide International Financial Reporting. (p.g 4)
Paraprofessional accountants People who are qualified in accounting to assume the duties of a general
bookkeeper as well as some of the duties of a professional accountant under that
accountant's supervision. (p. 7)
Sarbanes-Oxley Act A U.S. federal law enacted as a response to a number of major corporate and
accounting scandals that establishes a wide range of rules related to the audit
environment and internal controls. (p. 9)
(SEC) Securities and Exchange Commission The agency responsible for regulating public companies traded on a U.S. Stock
Exchange. (p. 4)
Transaction An event directly affecting an economic entity that can be expressed in terms of
money and that must be recorded in the accounting records. (p. 3)
Owner's Equity Owner's right to or investment in the business. (p. 13)
Assets Cash, properties or things of value owned by an economic unit or business entity.
(p. 13)
Business entity A business enterprise, separate and distinct from the persons who supply the
assets it uses. (p. 13)
Creditor One to whom money is owed. (p. 14)
Capital The owner's investment, or equity, in an enterprise.
(p. 13)
Chart of Accounts The official list of accounts tailor-made for the business. (p. 22)
Liabilities Debts or amounts owed to creditors. (p. 14)
Revenues Amounts earned by a business (fees for services, income from sales, rent income,
interest earned for lending money).
Expenses The costs that relate to earning revenue (the costs of doing business); examples
are wages, rent, interest, and advertising. They may be paid in cash immediately or
at a future time (AP) (p.21)
