MBUS 300 Exam 1 questions n
answers 2025/2026
Account - ANS ✔✔record of summarized and classified transaction data; component of financial
statement elements
Accounting - ANS ✔✔service-based profession developed to provide reliable and relevant
financial information useful in making decisions
Accounting Equation - ANS ✔✔relationship between a company's assets and the claim on
assets; assets = liabilities + equity
Accounting Event - ANS ✔✔economic occurrence that changes a company's assets, liabilities, or
equity
Accounting Period - ANS ✔✔time span covered by the financial statements
Annual Report - ANS ✔✔document companies publish to provide information, including
financial statements, to stockholders
Articulation - ANS ✔✔characteristic of financial statements that means they are interrelated
Asset - ANS ✔✔economic resource used to produce revenue that is expected to provide a
future benefit to the business
Asset Exchange Transaction - ANS ✔✔transaction that decreases one asset and increases
another asset
, Asset Source Transaction - ANS ✔✔transaction that increases both an asset and a claim on
assets; three types: from the owners (Equity), borrowing from creditors (Liabilities), or earnings
from operations (Revenues)
Asset Use Transaction - ANS ✔✔transaction that decreases both an asset and a claim on assets;
three types: distributions to owners, liability payments, or expenses
Balance Sheet - ANS ✔✔financial statement that reports a company's assets and the
corresponding claims on those assets as of a specific date
Claims - ANS ✔✔owners' and creditors' interests in a business's assets
Closing - ANS ✔✔bookkeeping technique of transferring balances from the temporary account
to the permanent account
Common Stock - ANS ✔✔basic class of corporate stock that has no preferential claim on assets
or dividends; certificates that evidence ownership in a company
Creditor - ANS ✔✔individual or organization that has loaned goods or services to a business
Dividend - ANS ✔✔transfer of wealth from a business to its owners
Double-entry Bookkeeping - ANS ✔✔recordkeeping system that provide checks and balances by
recording two sides for every transaction
Earnings - ANS ✔✔difference between revenue and expenses (profit)
answers 2025/2026
Account - ANS ✔✔record of summarized and classified transaction data; component of financial
statement elements
Accounting - ANS ✔✔service-based profession developed to provide reliable and relevant
financial information useful in making decisions
Accounting Equation - ANS ✔✔relationship between a company's assets and the claim on
assets; assets = liabilities + equity
Accounting Event - ANS ✔✔economic occurrence that changes a company's assets, liabilities, or
equity
Accounting Period - ANS ✔✔time span covered by the financial statements
Annual Report - ANS ✔✔document companies publish to provide information, including
financial statements, to stockholders
Articulation - ANS ✔✔characteristic of financial statements that means they are interrelated
Asset - ANS ✔✔economic resource used to produce revenue that is expected to provide a
future benefit to the business
Asset Exchange Transaction - ANS ✔✔transaction that decreases one asset and increases
another asset
, Asset Source Transaction - ANS ✔✔transaction that increases both an asset and a claim on
assets; three types: from the owners (Equity), borrowing from creditors (Liabilities), or earnings
from operations (Revenues)
Asset Use Transaction - ANS ✔✔transaction that decreases both an asset and a claim on assets;
three types: distributions to owners, liability payments, or expenses
Balance Sheet - ANS ✔✔financial statement that reports a company's assets and the
corresponding claims on those assets as of a specific date
Claims - ANS ✔✔owners' and creditors' interests in a business's assets
Closing - ANS ✔✔bookkeeping technique of transferring balances from the temporary account
to the permanent account
Common Stock - ANS ✔✔basic class of corporate stock that has no preferential claim on assets
or dividends; certificates that evidence ownership in a company
Creditor - ANS ✔✔individual or organization that has loaned goods or services to a business
Dividend - ANS ✔✔transfer of wealth from a business to its owners
Double-entry Bookkeeping - ANS ✔✔recordkeeping system that provide checks and balances by
recording two sides for every transaction
Earnings - ANS ✔✔difference between revenue and expenses (profit)
