ACC 101 exam questions and
answers graded A+
Business - ANS✅✅An organization in which basic resources (inputs), such as materials and labor,
are assembled and processed to provide goods or services (outputs) to customers.
Profit - ANS✅✅difference between the amounts received from customers for goods and services
and the amounts paid for the inputs and used to provide the goods or services
Accounting - ANS✅✅an information system that provides reports to users about the economic
activities and condition of a business
Managerial accounting - ANS✅✅the area of accounting that provides internal users with
information
Financial accounting - ANS✅✅the area of accounting that provides external users with information
General purpose financial statements - ANS✅✅one type of financial accounting report that is
distributed to external users
Cost concept - ANS✅✅amounts that are initially recorded in the accounting records at their cost
or purchase price
Objectivity concept - ANS✅✅requires that the amounts recorded in the accounting records be
based on objective evidence
Unit of measure concept - ANS✅✅requires that the economic data be recorded in dollars
Assets - ANS✅✅the resources owned by a business
Liabilities - ANS✅✅the rights of creditors are the debts of the business
Stockholder's equity - ANS✅✅the rights of the owners
answers graded A+
Business - ANS✅✅An organization in which basic resources (inputs), such as materials and labor,
are assembled and processed to provide goods or services (outputs) to customers.
Profit - ANS✅✅difference between the amounts received from customers for goods and services
and the amounts paid for the inputs and used to provide the goods or services
Accounting - ANS✅✅an information system that provides reports to users about the economic
activities and condition of a business
Managerial accounting - ANS✅✅the area of accounting that provides internal users with
information
Financial accounting - ANS✅✅the area of accounting that provides external users with information
General purpose financial statements - ANS✅✅one type of financial accounting report that is
distributed to external users
Cost concept - ANS✅✅amounts that are initially recorded in the accounting records at their cost
or purchase price
Objectivity concept - ANS✅✅requires that the amounts recorded in the accounting records be
based on objective evidence
Unit of measure concept - ANS✅✅requires that the economic data be recorded in dollars
Assets - ANS✅✅the resources owned by a business
Liabilities - ANS✅✅the rights of creditors are the debts of the business
Stockholder's equity - ANS✅✅the rights of the owners
