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ACC 212 final Questions with Correct Answers |
Updated (100% Correct Answers)
Assets Answer: Resources a company owns that are expected to provide future
economic benefits.
Liabilities Answer: Obligations a company owes to creditors; claims by outsiders.
Stockholders' equity Answer: Owners' claim on the company's assets after
liabilities are paid.
Accounting equation Answer: The fundamental relationship that assets are
financed by liabilities and stockholders' equity.
Current assets Answer: Assets expected to be used or converted to cash within
one year.
Long-term assets Answer: Assets expected to provide benefits for more than one
year.
Current liabilities Answer: Obligations due within one year.
Long-term liabilities Answer: Obligations due in more than one year.
Revenue Answer: Increase in equity from providing goods or services to
customers.
Expense Answer: Costs of doing business that decrease equity in the current
period.
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Dividends Answer: Distributions of earnings to stockholders; decrease retained
earnings but are not expenses.
Retained earnings Answer: Accumulated net income not yet distributed as
dividends.
Common stock Answer: Basic ownership shares issued to investors.
Preferred stock Answer: Stock with priority over common stock for dividends
and liquidation, usually without voting rights.
Treasury stock Answer: Company's own stock that has been repurchased; a
contra-equity account.
Financial statements Answer: Set of reports summarizing a company's financial
performance and position.
Income statement Answer: Reports revenues and expenses for a period to show
net income or loss.
Statement of stockholders' equity Answer: Shows changes in equity accounts,
including retained earnings, over a period.
Balance sheet Answer: Reports assets, liabilities, and stockholders' equity at a
specific point in time.
Statement of cash flows Answer: Shows cash inflows and outflows classified as
operating, investing, or financing activities.
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Operating activities Answer: Day-to-day activities that relate to revenue and
expense transactions.
Investing activities Answer: Activities involving purchases and sales of long-term
assets and investments.
Financing activities Answer: Activities involving borrowing from creditors or
transactions with owners (stock and dividends).
Accrual basis accounting Answer: Recognizes revenue when earned and
expenses when incurred, regardless of cash timing.
Cash basis accounting Answer: Recognizes revenue when cash is received and
expenses when cash is paid.
Revenue recognition principle Answer: Revenue is recorded when it is earned,
not necessarily when cash is received.
Matching principle Answer: Expenses are recorded in the same period as the
revenues they help generate.
Prepaid expense Answer: Payment for a future benefit recorded initially as an
asset and expensed over time.
Deferred revenue Answer: Cash received before services are provided; recorded
as a liability until earned.
Accrued revenue Answer: Revenue that has been earned but not yet billed or
collected in cash.
© 2026 All rights reserved
ACC 212 final Questions with Correct Answers |
Updated (100% Correct Answers)
Assets Answer: Resources a company owns that are expected to provide future
economic benefits.
Liabilities Answer: Obligations a company owes to creditors; claims by outsiders.
Stockholders' equity Answer: Owners' claim on the company's assets after
liabilities are paid.
Accounting equation Answer: The fundamental relationship that assets are
financed by liabilities and stockholders' equity.
Current assets Answer: Assets expected to be used or converted to cash within
one year.
Long-term assets Answer: Assets expected to provide benefits for more than one
year.
Current liabilities Answer: Obligations due within one year.
Long-term liabilities Answer: Obligations due in more than one year.
Revenue Answer: Increase in equity from providing goods or services to
customers.
Expense Answer: Costs of doing business that decrease equity in the current
period.
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,2
Dividends Answer: Distributions of earnings to stockholders; decrease retained
earnings but are not expenses.
Retained earnings Answer: Accumulated net income not yet distributed as
dividends.
Common stock Answer: Basic ownership shares issued to investors.
Preferred stock Answer: Stock with priority over common stock for dividends
and liquidation, usually without voting rights.
Treasury stock Answer: Company's own stock that has been repurchased; a
contra-equity account.
Financial statements Answer: Set of reports summarizing a company's financial
performance and position.
Income statement Answer: Reports revenues and expenses for a period to show
net income or loss.
Statement of stockholders' equity Answer: Shows changes in equity accounts,
including retained earnings, over a period.
Balance sheet Answer: Reports assets, liabilities, and stockholders' equity at a
specific point in time.
Statement of cash flows Answer: Shows cash inflows and outflows classified as
operating, investing, or financing activities.
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, 3
Operating activities Answer: Day-to-day activities that relate to revenue and
expense transactions.
Investing activities Answer: Activities involving purchases and sales of long-term
assets and investments.
Financing activities Answer: Activities involving borrowing from creditors or
transactions with owners (stock and dividends).
Accrual basis accounting Answer: Recognizes revenue when earned and
expenses when incurred, regardless of cash timing.
Cash basis accounting Answer: Recognizes revenue when cash is received and
expenses when cash is paid.
Revenue recognition principle Answer: Revenue is recorded when it is earned,
not necessarily when cash is received.
Matching principle Answer: Expenses are recorded in the same period as the
revenues they help generate.
Prepaid expense Answer: Payment for a future benefit recorded initially as an
asset and expensed over time.
Deferred revenue Answer: Cash received before services are provided; recorded
as a liability until earned.
Accrued revenue Answer: Revenue that has been earned but not yet billed or
collected in cash.
© 2026 All rights reserved
