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ACCOUNTING 2026 QUESTIONS AND
ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
Assets - correct answer-Things company owns & uses to
generate revenue
Liabilities - correct answer-Amount that company owes
Equity - correct answer-Amount invested in company by owners;
owners claim no assets
Accounting equation - correct answer-Assets = liabilities + equity
Truism in business - correct answer-Company never receives
greater than it gives & never gives greater than it receives
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4 Rules of debits & credits - correct answer-1. Debit amount
received; credit amount given up
2. Debuts on left; credits on the right
3. In each transactions; list debits first (good) & credits last (bad)
4. Total debits = total credits
Making an ethical decision - correct answer-1. Identify ethical
concerns- use personal ethics to recognize concern
2. Analyze options- consider all good & bad consequences
3. Make ethical decision- choose best option given circumstances
Fraud - correct answer-Intentional manipulation- focus on
prevention. Once fraud is committed, loses are rarely retrieved.
Fraud Triangle - correct answer-Opportunity (low risk of being
caught), Financial Pressure (incentive), Rationalization (making
situation justifiable)
GAAP (generally accepted accounting principles) - correct
answer-Financial accounting is governed by concepts & rules.
1. Relevant info affects decision of user
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2. Reliable info trusted by users
3. Comparable info aids in contrasting organizations
SEC- Securities and Exchange Commission - correct answer-
Federal agency congress has charged to set reporting rules for
org that sell ownership shares to public
FASB (Financial Accounting Standards Board) - correct answer-
Independent group of full-time members responsible for setting
accounting rules
IASB (international accounting standards board) - correct answer-
Group that identifies preferred accounting practices & encourages
global acceptance; issues IFRS
Measurement/cost principle - correct answer-Accounting info
based on actual cost.
-if cash is given for a service, cost is measured by cash paid
-if other is exchanged (car traded for truck), cost is measured as
cash value of what is given up or received
ACCOUNTING 2026 QUESTIONS AND
ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
Assets - correct answer-Things company owns & uses to
generate revenue
Liabilities - correct answer-Amount that company owes
Equity - correct answer-Amount invested in company by owners;
owners claim no assets
Accounting equation - correct answer-Assets = liabilities + equity
Truism in business - correct answer-Company never receives
greater than it gives & never gives greater than it receives
, Page | 2
4 Rules of debits & credits - correct answer-1. Debit amount
received; credit amount given up
2. Debuts on left; credits on the right
3. In each transactions; list debits first (good) & credits last (bad)
4. Total debits = total credits
Making an ethical decision - correct answer-1. Identify ethical
concerns- use personal ethics to recognize concern
2. Analyze options- consider all good & bad consequences
3. Make ethical decision- choose best option given circumstances
Fraud - correct answer-Intentional manipulation- focus on
prevention. Once fraud is committed, loses are rarely retrieved.
Fraud Triangle - correct answer-Opportunity (low risk of being
caught), Financial Pressure (incentive), Rationalization (making
situation justifiable)
GAAP (generally accepted accounting principles) - correct
answer-Financial accounting is governed by concepts & rules.
1. Relevant info affects decision of user
, Page | 3
2. Reliable info trusted by users
3. Comparable info aids in contrasting organizations
SEC- Securities and Exchange Commission - correct answer-
Federal agency congress has charged to set reporting rules for
org that sell ownership shares to public
FASB (Financial Accounting Standards Board) - correct answer-
Independent group of full-time members responsible for setting
accounting rules
IASB (international accounting standards board) - correct answer-
Group that identifies preferred accounting practices & encourages
global acceptance; issues IFRS
Measurement/cost principle - correct answer-Accounting info
based on actual cost.
-if cash is given for a service, cost is measured by cash paid
-if other is exchanged (car traded for truck), cost is measured as
cash value of what is given up or received
