ACCOUNTING 101 IVY TECH FINAL TEST
PAPER 2026 QUESTIONS AND COMPLETE
SOLUTIONS VERIFIED SUCCESS GRADED A+
⩥ Accounting.
Answer: The process of analyzing, classifying, recording, summarizing,
and interpreting business transactions in financial or monetary terms. (p.
3)
⩥ Economic unit.
Answer: Includes both business enterprises and not-for-profit entities.
(p. 3)
⩥ Ethics.
Answer: A philosophy or code or system of morality that is, how we
conduct ourselves from day to day in a variety of situations requiring a
decision, usually of a right or wrong nature. (p. 8)
⩥ (FASB) Financial Accounting Standards Board SEC-FASB-GAAP.
Answer: The organization, created in 1973 by the SEC, that created
GAAP. (p. 4)
⩥ (GAAP) Generally Accepted Accounting Principles.
,Answer: The rules or guidelines used for carrying out the accounting
process. (p. 4)
⩥ (IASB) International Accounting Standards Board.
Answer: The International organization that provides Standards or rules
for international financial reporting. (p. 4)
⩥ (IFRS) International Financial Reporting Standards.
Answer: The rules or guidelines that guide International Financial
Reporting. (p.g 4)
⩥ Paraprofessional accountants.
Answer: 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.
Answer: 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.
Answer: The agency responsible for regulating public companies traded
on a U.S. Stock Exchange. (p. 4)
,⩥ Transaction.
Answer: 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.
Answer: Owner's right to or investment in the business. (p. 13)
⩥ Assets.
Answer: Cash, properties or things of value owned by an economic unit
or business entity. (p. 13)
⩥ Business entity.
Answer: A business enterprise, separate and distinct from the persons
who supply the assets it uses. (p. 13)
⩥ Creditor.
Answer: One to whom money is owed. (p. 14)
⩥ Capital.
Answer: The owner's investment, or equity, in an enterprise.
(p. 13)
, ⩥ Chart of Accounts.
Answer: The official list of accounts tailor-made for the business. (p. 22)
⩥ Liabilities.
Answer: Debts or amounts owed to creditors. (p. 14)
⩥ Revenues.
Answer: Amounts earned by a business (fees for services, income from
sales, rent income, interest earned for lending money).
⩥ Expenses.
Answer: 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)
⩥ Account numbers.
Answer: The numbers assigned to accounts according to the chart of
accounts. (p. 22)
⩥ Accounts.
Answer: The categories under the Assets, Liabilities, and Owner's Equity
headings. (p.16)
PAPER 2026 QUESTIONS AND COMPLETE
SOLUTIONS VERIFIED SUCCESS GRADED A+
⩥ Accounting.
Answer: The process of analyzing, classifying, recording, summarizing,
and interpreting business transactions in financial or monetary terms. (p.
3)
⩥ Economic unit.
Answer: Includes both business enterprises and not-for-profit entities.
(p. 3)
⩥ Ethics.
Answer: A philosophy or code or system of morality that is, how we
conduct ourselves from day to day in a variety of situations requiring a
decision, usually of a right or wrong nature. (p. 8)
⩥ (FASB) Financial Accounting Standards Board SEC-FASB-GAAP.
Answer: The organization, created in 1973 by the SEC, that created
GAAP. (p. 4)
⩥ (GAAP) Generally Accepted Accounting Principles.
,Answer: The rules or guidelines used for carrying out the accounting
process. (p. 4)
⩥ (IASB) International Accounting Standards Board.
Answer: The International organization that provides Standards or rules
for international financial reporting. (p. 4)
⩥ (IFRS) International Financial Reporting Standards.
Answer: The rules or guidelines that guide International Financial
Reporting. (p.g 4)
⩥ Paraprofessional accountants.
Answer: 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.
Answer: 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.
Answer: The agency responsible for regulating public companies traded
on a U.S. Stock Exchange. (p. 4)
,⩥ Transaction.
Answer: 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.
Answer: Owner's right to or investment in the business. (p. 13)
⩥ Assets.
Answer: Cash, properties or things of value owned by an economic unit
or business entity. (p. 13)
⩥ Business entity.
Answer: A business enterprise, separate and distinct from the persons
who supply the assets it uses. (p. 13)
⩥ Creditor.
Answer: One to whom money is owed. (p. 14)
⩥ Capital.
Answer: The owner's investment, or equity, in an enterprise.
(p. 13)
, ⩥ Chart of Accounts.
Answer: The official list of accounts tailor-made for the business. (p. 22)
⩥ Liabilities.
Answer: Debts or amounts owed to creditors. (p. 14)
⩥ Revenues.
Answer: Amounts earned by a business (fees for services, income from
sales, rent income, interest earned for lending money).
⩥ Expenses.
Answer: 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)
⩥ Account numbers.
Answer: The numbers assigned to accounts according to the chart of
accounts. (p. 22)
⩥ Accounts.
Answer: The categories under the Assets, Liabilities, and Owner's Equity
headings. (p.16)
