ACC 231 ASU Wolfe Exam 1 Question and answers already passed 2025/2026

ACC 231 ASU Wolfe Exam 1 Question
and answers already passed
2025/2026
Financial Accounting - correct answer ✔provides information to people outside the

organization



Managerial Accounting - correct answer ✔provides information to people inside the

organization



ADEROL - correct answer ✔ADE

DR Assets, Dividends, Expenses to increase

ROL

CR Revenue, Owner's Equity, and Liabilities to increase



Accounting Equation (Assets) = - correct answer ✔liability + stockholder's equity (owner's equity)



Retained Earnings - correct answer ✔Revenue - expenses - dividends



Owner's Equity - correct answer ✔Common stock and retained earnings



Income - correct answer ✔Revenue - expenses



Asset Types - correct answer ✔-Cash

-Accounts Receivable: a customer's promise to pay

, -Prepaid Expenses (ie prepaid rent or prepaid insurance)

-Notes Receivable-similar to Accounts Receivable but the -customer/employee signs a note.

-Building

-Equipment

-Land



Liability Types - correct answer ✔-Accounts Payable (Salaries Payable): an agreement to pay

-Notes Payable: written promise to pay

-Unearned Revenue or Deferred Revenue



Expense Types - correct answer ✔-Wage Expenses/Salaries Expenses

-Utility Expenses

-Rent Expenses



Security Exchange Commission (SEC) - correct answer ✔Mission is to protect investors and maintain
fair markets



FASB - correct answer ✔Creates accounting principles of US GAAP that public companies follow



IASB - correct answer ✔Creates accounting principles the IFRS follows



US GAAP - correct answer ✔Generally Accepted Accounting Principles, what accountants use in the US



IFRS - correct answer ✔Standards the rest of the countries use