ACC 101 exam questions and
answers graded A+
What is the ultimate goal of accounting - ANS✅✅to prepare financial statements that permit
owners, investors and creditors to analyze the financial health of a company and make investing and
lending decisions
accounting formula - ANS✅✅Assets = Liabilities + Equity
The accounting equation is represented in what - ANS✅✅the balance sheet
In the Accounting Equation, Assets represent: - ANS✅✅All resources (i.e. things) a company has at
its disposal that it will use to help create revenues.
In the Accounting Equation, Liabilities represent - ANS✅✅The portion of the value of the assets
that is owed to creditors
In the Accounting Equation, Equity represents - ANS✅✅The portion of the value of the assets that
is owned by the owners(shareholders)
The ultimate goal of any company is to increase Equity through - ANS✅✅Net income (profits)
Decreases in Equity resulting from consuming assets to produce revenues are called -
ANS✅✅Expense
The effects on Equity of Revenues and Expenses are temporarily separated from Equity in order to
isolate the firms - ANS✅✅Net Income (profits)
Revenues, Expenses,and Net Income are shown in this statement - ANS✅✅Income statement
The longest time period Net Income is tracked for is - ANS✅✅one year
answers graded A+
What is the ultimate goal of accounting - ANS✅✅to prepare financial statements that permit
owners, investors and creditors to analyze the financial health of a company and make investing and
lending decisions
accounting formula - ANS✅✅Assets = Liabilities + Equity
The accounting equation is represented in what - ANS✅✅the balance sheet
In the Accounting Equation, Assets represent: - ANS✅✅All resources (i.e. things) a company has at
its disposal that it will use to help create revenues.
In the Accounting Equation, Liabilities represent - ANS✅✅The portion of the value of the assets
that is owed to creditors
In the Accounting Equation, Equity represents - ANS✅✅The portion of the value of the assets that
is owned by the owners(shareholders)
The ultimate goal of any company is to increase Equity through - ANS✅✅Net income (profits)
Decreases in Equity resulting from consuming assets to produce revenues are called -
ANS✅✅Expense
The effects on Equity of Revenues and Expenses are temporarily separated from Equity in order to
isolate the firms - ANS✅✅Net Income (profits)
Revenues, Expenses,and Net Income are shown in this statement - ANS✅✅Income statement
The longest time period Net Income is tracked for is - ANS✅✅one year
