Payroll Fundamentals 2 Exam Actual
Questions and Answers 2026
The accounting equation states: -
correct answer ✅Assets = Liabilities + Owners Equity
Owner's Equity has two components: -
correct answer ✅Owner's Equity = Contributed Capital + Retained
Earnings
Contributed Capital -
correct answer ✅The amount of payments in cash or assets that
the owners have made to the company
The accounting equation can be expanded to: -
correct answer ✅Assets = Liabilties + Contributed Capital +
Retained Earnings
The 5 different accounts of a typical for-profit organization -
correct answer ✅- asset accounts
- liability accounts
- revenue accounts
- expense accounts
- owners' equity accounts
,Payroll Fundamentals 2 Exam Actual
Questions and Answers 2026
Asset accounts -
correct answer ✅Contains the value of items owned by the
organization
Liability accounts -
correct answer ✅Indicates the money that the organization owes
to its creditors
Asset accounts include: -
correct answer ✅- Cash
- Accounts receivable
- prepaid expenses
- inventory
Liability accounts include -
correct answer ✅- accounts payable
- salaries and wages payable
- vacation pay payable
, Payroll Fundamentals 2 Exam Actual
Questions and Answers 2026
Revenue accounts -
correct answer ✅Used to record the income earned by the
organization during the accounting cycle
Expense accounts -
correct answer ✅Costs incurred by an organization in the process
of earning revenue during a designated period of time
Equity accounts -
correct answer ✅Accounts that show the owners' or shareholders'
worth or interest in the organization
Owners' equity is divided into: -
correct answer ✅Contributed capital & retained earnings
General ledger accounts consists of the following five elements: -
correct answer ✅- account name
- opening balance
- reference
- debit and credit transactions
- closing balance
Questions and Answers 2026
The accounting equation states: -
correct answer ✅Assets = Liabilities + Owners Equity
Owner's Equity has two components: -
correct answer ✅Owner's Equity = Contributed Capital + Retained
Earnings
Contributed Capital -
correct answer ✅The amount of payments in cash or assets that
the owners have made to the company
The accounting equation can be expanded to: -
correct answer ✅Assets = Liabilties + Contributed Capital +
Retained Earnings
The 5 different accounts of a typical for-profit organization -
correct answer ✅- asset accounts
- liability accounts
- revenue accounts
- expense accounts
- owners' equity accounts
,Payroll Fundamentals 2 Exam Actual
Questions and Answers 2026
Asset accounts -
correct answer ✅Contains the value of items owned by the
organization
Liability accounts -
correct answer ✅Indicates the money that the organization owes
to its creditors
Asset accounts include: -
correct answer ✅- Cash
- Accounts receivable
- prepaid expenses
- inventory
Liability accounts include -
correct answer ✅- accounts payable
- salaries and wages payable
- vacation pay payable
, Payroll Fundamentals 2 Exam Actual
Questions and Answers 2026
Revenue accounts -
correct answer ✅Used to record the income earned by the
organization during the accounting cycle
Expense accounts -
correct answer ✅Costs incurred by an organization in the process
of earning revenue during a designated period of time
Equity accounts -
correct answer ✅Accounts that show the owners' or shareholders'
worth or interest in the organization
Owners' equity is divided into: -
correct answer ✅Contributed capital & retained earnings
General ledger accounts consists of the following five elements: -
correct answer ✅- account name
- opening balance
- reference
- debit and credit transactions
- closing balance
