Accounting 2200 OSU
Exam 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
, 4 Financial Statements 1) Balance Sheet
2) Income Statement
3) Statement of Owners Equity
4) Statement of Cash Flows
GAAP Generally accepted accounting principles (Rules for comparison between financial
statements, established by private FASB and public the public SEC)
Balance Sheet Statement of financial position (Assets, Liabilities, Equity). Prepared at a specific
point in time.
Assets Economic resources owned
Liabilities Debts owed
Equity Amount of owner's investment (two components with corporations, other two forms
have only contributed capital)
Fundamental Accounting Equation Assets = Liabilities + Equity
Current Assets Expire or converted to cash within one year. Cash, Accounts Receivable, Inventory,
Supplies
Long Term Assets Expire or converted to cash after one year. Property-Plant-Equipment (P-P-E),
Trademark, Patent, Copyright
Historical Cost Concept Assets are shown at their cost to aquire, not their current value
Current Liabilities Due within one year
Include accounts payable, short term notes payable (bank loan), salaries payable,
income taxes payable, utilities payable
note: last three examples of accrued liabilities
Long-Term Liabilities Due after one year
Include long term notes payable, mortgage payable, bonds payable
Exam 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
, 4 Financial Statements 1) Balance Sheet
2) Income Statement
3) Statement of Owners Equity
4) Statement of Cash Flows
GAAP Generally accepted accounting principles (Rules for comparison between financial
statements, established by private FASB and public the public SEC)
Balance Sheet Statement of financial position (Assets, Liabilities, Equity). Prepared at a specific
point in time.
Assets Economic resources owned
Liabilities Debts owed
Equity Amount of owner's investment (two components with corporations, other two forms
have only contributed capital)
Fundamental Accounting Equation Assets = Liabilities + Equity
Current Assets Expire or converted to cash within one year. Cash, Accounts Receivable, Inventory,
Supplies
Long Term Assets Expire or converted to cash after one year. Property-Plant-Equipment (P-P-E),
Trademark, Patent, Copyright
Historical Cost Concept Assets are shown at their cost to aquire, not their current value
Current Liabilities Due within one year
Include accounts payable, short term notes payable (bank loan), salaries payable,
income taxes payable, utilities payable
note: last three examples of accrued liabilities
Long-Term Liabilities Due after one year
Include long term notes payable, mortgage payable, bonds payable
