ACC 100 FINAL EXAM |2025-2026 LATEST UPDATED | ACTUAL EXAM
QUESTIONS WITH SOLUTIONS | 100% RATED CORRECT | 100%
VERFIED SOLTIONS | ALREADY GRADED A+
What is the order of financial statements produced? - (ANSWER)1. Income Statement 2.
Statement of Retained Earnings 3. Balance Sheet 4. Statement of Cash Flows
What does the Income Statement report? - (ANSWER)Revenues and expenses for a specific
period of time, indicating net income or net loss.
What is net income? - (ANSWER)When revenues exceed expenses.
What is net loss? - (ANSWER)When expenses exceed revenues.
Are amounts received from issuing stock considered revenues? - (ANSWER)No, they are not
revenues.
What are dividends in relation to the company? - (ANSWER)Dividends are distributions of
earnings to owners/shareholders and decrease equity.
,What is the significance of profit in the Income Statement? - (ANSWER)Profit is used in the
Statement of Retained Earnings.
How are revenues and expenses listed in the Income Statement? - (ANSWER)From largest to
smallest amounts.
What is a unique feature of the Income Tax Expense in the Income Statement? - (ANSWER)It is
a separate line item and not included with other operating expenses.
What does the Statement of Retained Earnings show? - (ANSWER)Amounts and causes of
changes in retained earnings during the period, including profits and dividends paid.
What does the Balance Sheet report? - (ANSWER)Assets, liabilities, and equity at a specific
point in time.
What must the heading of a Balance Sheet identify? - (ANSWER)The company, the statement
type, and the date at the end of the period.
What is the Balance Sheet equation? - (ANSWER)Assets = Liabilities + Owners Equity.
,How are assets subdivided in the Balance Sheet? - (ANSWER)Into current assets, long-term
assets, intangible assets, and other assets.
What are current assets? - (ANSWER)Assets expected to be converted to cash or used up within
one year of the balance sheet date.
What is the order of listing for current assets? - (ANSWER)In order of liquidity, or how fast they
can be converted to cash.
What are examples of current assets? - (ANSWER)Cash, Accounts Receivable, Prepaids,
Inventory.
What are long-term assets? - (ANSWER)Property, plant, and equipment or intangible assets used
over a period longer than a year.
What are common examples of current liabilities? - (ANSWER)Accounts payable, salaries and
wages payable, notes payable, unearned revenue, interest payable, and income taxes payable.
What are long-term liabilities? - (ANSWER)Obligations a company expects to pay after one
year, such as bank loans and bonds payable.
, What does the Statement of Cash Flows provide information about? - (ANSWER)The company's
ability to generate future cash flows, pay dividends, and meet debt obligations.
What are the three sections of the Statement of Cash Flows? - (ANSWER)Operating, Investing,
and Financing.
Why are cash flows from operating activities important? - (ANSWER)They are the main source
for future debt repayments and dividend payments.
What are transactions in accounting? - (ANSWER)Economic events that must be recorded in the
financial statements, specifically those that affect or change assets, liabilities, and/or
shareholders' equity.
What qualifies an event to be recorded as a transaction? - (ANSWER)An event must be
measurable and realized to be recorded in the accounting system.
What happens to events that are measurable but not realized or realized but not measurable? -
(ANSWER)They are considered events but NOT transactions and are never recorded in the
accounting system.
QUESTIONS WITH SOLUTIONS | 100% RATED CORRECT | 100%
VERFIED SOLTIONS | ALREADY GRADED A+
What is the order of financial statements produced? - (ANSWER)1. Income Statement 2.
Statement of Retained Earnings 3. Balance Sheet 4. Statement of Cash Flows
What does the Income Statement report? - (ANSWER)Revenues and expenses for a specific
period of time, indicating net income or net loss.
What is net income? - (ANSWER)When revenues exceed expenses.
What is net loss? - (ANSWER)When expenses exceed revenues.
Are amounts received from issuing stock considered revenues? - (ANSWER)No, they are not
revenues.
What are dividends in relation to the company? - (ANSWER)Dividends are distributions of
earnings to owners/shareholders and decrease equity.
,What is the significance of profit in the Income Statement? - (ANSWER)Profit is used in the
Statement of Retained Earnings.
How are revenues and expenses listed in the Income Statement? - (ANSWER)From largest to
smallest amounts.
What is a unique feature of the Income Tax Expense in the Income Statement? - (ANSWER)It is
a separate line item and not included with other operating expenses.
What does the Statement of Retained Earnings show? - (ANSWER)Amounts and causes of
changes in retained earnings during the period, including profits and dividends paid.
What does the Balance Sheet report? - (ANSWER)Assets, liabilities, and equity at a specific
point in time.
What must the heading of a Balance Sheet identify? - (ANSWER)The company, the statement
type, and the date at the end of the period.
What is the Balance Sheet equation? - (ANSWER)Assets = Liabilities + Owners Equity.
,How are assets subdivided in the Balance Sheet? - (ANSWER)Into current assets, long-term
assets, intangible assets, and other assets.
What are current assets? - (ANSWER)Assets expected to be converted to cash or used up within
one year of the balance sheet date.
What is the order of listing for current assets? - (ANSWER)In order of liquidity, or how fast they
can be converted to cash.
What are examples of current assets? - (ANSWER)Cash, Accounts Receivable, Prepaids,
Inventory.
What are long-term assets? - (ANSWER)Property, plant, and equipment or intangible assets used
over a period longer than a year.
What are common examples of current liabilities? - (ANSWER)Accounts payable, salaries and
wages payable, notes payable, unearned revenue, interest payable, and income taxes payable.
What are long-term liabilities? - (ANSWER)Obligations a company expects to pay after one
year, such as bank loans and bonds payable.
, What does the Statement of Cash Flows provide information about? - (ANSWER)The company's
ability to generate future cash flows, pay dividends, and meet debt obligations.
What are the three sections of the Statement of Cash Flows? - (ANSWER)Operating, Investing,
and Financing.
Why are cash flows from operating activities important? - (ANSWER)They are the main source
for future debt repayments and dividend payments.
What are transactions in accounting? - (ANSWER)Economic events that must be recorded in the
financial statements, specifically those that affect or change assets, liabilities, and/or
shareholders' equity.
What qualifies an event to be recorded as a transaction? - (ANSWER)An event must be
measurable and realized to be recorded in the accounting system.
What happens to events that are measurable but not realized or realized but not measurable? -
(ANSWER)They are considered events but NOT transactions and are never recorded in the
accounting system.
