ACC100 Final Exam 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
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.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
Questions with 100% Correct Answers |
Latest Update
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.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
