5/29/25, 6:52 PM Accounting Exam 1
ACCOUNTING ACTUAL MIDTERM EXAM 1 \2025-2026
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS \VERIFIED ANSWERS ALREADY GRADED A+ \
LATEST UPDATE
the accounting equation is elements
composed of
_ __ called assets, liabilities,
and
stockholders equity
in accounting terms, the liabilities
obligations of a business owes
to its creditors are called
when a business grants an common stock
investor an ownership interest
in a business, the
specific commitments made to
the investor are described in
certificates called
an accounting event is a(n) economic transaction that changes enterprise
______________
- common stock
stockholder's equity may be
divided into - retained earnings
- earning through profitable operations
asset source transactions - issuing common stock for cash
include - borrowing money
assets - common stock - retained earnings
liabilities =
economic occurrence that accounting event
changes assets, liabilities, or
stockholder's equity is called
accounting equation is accounts
maintained in records
called
1/24
,5/29/25, 6:52 PM Accounting Exam 1
event that increases total asset source
assets and total claims is
an
_______________ transact
ion
total assets = liabilities + stockholders equity
asset use transactions the total decrease
amount of assets + total
amount of claims
one asset account asset exchange transaction
decreases, one increases
=
economic benefit that a revenue
company derives from
providing goods and
services to its customers
called _________
the amount of cash - cash
dividends a company can - retained earnings
pay are limited to the company's
_________ & _____________
- assets = liabilities + accounting equation
stockholders equity
- assets = claims
- assets = liabilities +
common stock + retained
earnings
event that causes assets and asset use transaction
liabilities to decrease is what
type of transation?
2/24
, 5/29/25, 6:52 PM Accounting Exam 1
recognizing cash expense decrease, decrease
will cause the amount of
cash to ________ and
revenue to
_______________
liability, common stock, cash
and retained earnings do
not contain
relationship between a accounting equation
business's assets and
claims on its assets is
expressed in what
equation
statement in changes of owners
stockholder's equity
captures info related to
the
company's ___________
- sourcesof assets
common stock and retained
earnings are - commitment to investor
which account is affected by retained earnings
recognition of expenses?
how the business income statement
performed during a
specific accounting
period =
- issuingcommon stock financing activities
- paying dividends
- borrowing cash
- repaying principle balances
which financial statement statement of changes in stockholders equity
reports effects on common
stock and retained
earnings?
- sources of assets
liabilities may be viewed as
- obligations of the business
3/24
ACCOUNTING ACTUAL MIDTERM EXAM 1 \2025-2026
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS \VERIFIED ANSWERS ALREADY GRADED A+ \
LATEST UPDATE
the accounting equation is elements
composed of
_ __ called assets, liabilities,
and
stockholders equity
in accounting terms, the liabilities
obligations of a business owes
to its creditors are called
when a business grants an common stock
investor an ownership interest
in a business, the
specific commitments made to
the investor are described in
certificates called
an accounting event is a(n) economic transaction that changes enterprise
______________
- common stock
stockholder's equity may be
divided into - retained earnings
- earning through profitable operations
asset source transactions - issuing common stock for cash
include - borrowing money
assets - common stock - retained earnings
liabilities =
economic occurrence that accounting event
changes assets, liabilities, or
stockholder's equity is called
accounting equation is accounts
maintained in records
called
1/24
,5/29/25, 6:52 PM Accounting Exam 1
event that increases total asset source
assets and total claims is
an
_______________ transact
ion
total assets = liabilities + stockholders equity
asset use transactions the total decrease
amount of assets + total
amount of claims
one asset account asset exchange transaction
decreases, one increases
=
economic benefit that a revenue
company derives from
providing goods and
services to its customers
called _________
the amount of cash - cash
dividends a company can - retained earnings
pay are limited to the company's
_________ & _____________
- assets = liabilities + accounting equation
stockholders equity
- assets = claims
- assets = liabilities +
common stock + retained
earnings
event that causes assets and asset use transaction
liabilities to decrease is what
type of transation?
2/24
, 5/29/25, 6:52 PM Accounting Exam 1
recognizing cash expense decrease, decrease
will cause the amount of
cash to ________ and
revenue to
_______________
liability, common stock, cash
and retained earnings do
not contain
relationship between a accounting equation
business's assets and
claims on its assets is
expressed in what
equation
statement in changes of owners
stockholder's equity
captures info related to
the
company's ___________
- sourcesof assets
common stock and retained
earnings are - commitment to investor
which account is affected by retained earnings
recognition of expenses?
how the business income statement
performed during a
specific accounting
period =
- issuingcommon stock financing activities
- paying dividends
- borrowing cash
- repaying principle balances
which financial statement statement of changes in stockholders equity
reports effects on common
stock and retained
earnings?
- sources of assets
liabilities may be viewed as
- obligations of the business
3/24
