Accounting 2301: Chapter
1 2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Account Form The form of balance sheet that resembles the basic format of the accounting
equation, with assets on the left side and Liabilities and Stockholders' Equity
sections on the right side.
Account Payable The liability created by a purchase on account.
Account Receivable A claim against the customer created by selling merchandise or services on credit.
Accounting An information system that provides reports to stakeholders about the economic
activities and condition of a business.
Accounting Equation Assets = Liabilities + Owner's Equity.
Assets The resources owned by a business.
Balance Sheet A list of the assets, liabilities, and stockholders' equity as of a specific date, usually
at the close of the last day of a month or a year.
Business An organization in which basic resources (inputs), such as materials and labor, are
assembled and processed to provide goods or services (outputs) to customers.
Business Entity Concept A concept of accounting that limits the economic data in the accounting system to
data related directly to the activities of the business.
Business Transaction An economic event or condition that directly changes an entity's financial condition
or directly affects its results of operations.
Capital Stock The portion of a corporation's stockholders' equity contributed by investors (owners)
in exchange for shares of stock.
Certified Public Accountant (CPA) Public accountants who have met a state's education, experience, and examination
requirements.
1 2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Account Form The form of balance sheet that resembles the basic format of the accounting
equation, with assets on the left side and Liabilities and Stockholders' Equity
sections on the right side.
Account Payable The liability created by a purchase on account.
Account Receivable A claim against the customer created by selling merchandise or services on credit.
Accounting An information system that provides reports to stakeholders about the economic
activities and condition of a business.
Accounting Equation Assets = Liabilities + Owner's Equity.
Assets The resources owned by a business.
Balance Sheet A list of the assets, liabilities, and stockholders' equity as of a specific date, usually
at the close of the last day of a month or a year.
Business An organization in which basic resources (inputs), such as materials and labor, are
assembled and processed to provide goods or services (outputs) to customers.
Business Entity Concept A concept of accounting that limits the economic data in the accounting system to
data related directly to the activities of the business.
Business Transaction An economic event or condition that directly changes an entity's financial condition
or directly affects its results of operations.
Capital Stock The portion of a corporation's stockholders' equity contributed by investors (owners)
in exchange for shares of stock.
Certified Public Accountant (CPA) Public accountants who have met a state's education, experience, and examination
requirements.
