ACC 231 Exam 1 Flashcards Question
and answers rated A+ 2025/2026
Business - correct answer ✔A legal organization that attempts to create value by exchanging products
with customers for money.
Product - correct answer ✔A good or service purchased or produced by a business to be sold.
Goods - correct answer ✔Physical items that can be touched and felt.
Services - correct answer ✔Activities that exist but cannot be touched and felt.
Customer - correct answer ✔A person or organization that purchases a product from a business.
Sale - correct answer ✔The exchange between a business and a customer where the business provides
a customer a product and the business receives money or money substitutes.
Value - correct answer ✔The price someone is willing to pay for an item.
Cost - correct answer ✔The amount of money or money substitutes a business pays to receive an item
used in operating a business.
Revenue - correct answer ✔The amount of money or money substitutes a business receives from the
sale of a product.
Profit - correct answer ✔The revenue from a sale less the cost of the sale.
, Risk - correct answer ✔The uncertainty that could result in an outcome not desired.
Loss - correct answer ✔A negative profit that occurs when the cost of a sale is greater than the revenue
from the sale.
Stakeholder - correct answer ✔A person or organization affected by a business.
Liabilities - correct answer ✔An amount owed to a lender or other creditor.
Stockholder's Equity - correct answer ✔Money provided to the business by owners either through an
initial investment or the retention of profits; also known as "Owner's Equity".
Asset - correct answer ✔An economic resource that a business owns and can use to operate the
business.
Employees - correct answer ✔People hired by a business for a period of time to operate the business.
Expense - correct answer ✔Money or other value surrendered due to the sale of goods or services or
the operating of the business.
Interest - correct answer ✔The expense of using borrowed money for a period of time.
Net Income - correct answer ✔Operating profit less interest expense, computed as revenue, less
operating expenses, less interest expense.
For-profit business - correct answer ✔A business that attempts to create an exchange, or sale, where
revenue exceeds expenses, creating a profit.
and answers rated A+ 2025/2026
Business - correct answer ✔A legal organization that attempts to create value by exchanging products
with customers for money.
Product - correct answer ✔A good or service purchased or produced by a business to be sold.
Goods - correct answer ✔Physical items that can be touched and felt.
Services - correct answer ✔Activities that exist but cannot be touched and felt.
Customer - correct answer ✔A person or organization that purchases a product from a business.
Sale - correct answer ✔The exchange between a business and a customer where the business provides
a customer a product and the business receives money or money substitutes.
Value - correct answer ✔The price someone is willing to pay for an item.
Cost - correct answer ✔The amount of money or money substitutes a business pays to receive an item
used in operating a business.
Revenue - correct answer ✔The amount of money or money substitutes a business receives from the
sale of a product.
Profit - correct answer ✔The revenue from a sale less the cost of the sale.
, Risk - correct answer ✔The uncertainty that could result in an outcome not desired.
Loss - correct answer ✔A negative profit that occurs when the cost of a sale is greater than the revenue
from the sale.
Stakeholder - correct answer ✔A person or organization affected by a business.
Liabilities - correct answer ✔An amount owed to a lender or other creditor.
Stockholder's Equity - correct answer ✔Money provided to the business by owners either through an
initial investment or the retention of profits; also known as "Owner's Equity".
Asset - correct answer ✔An economic resource that a business owns and can use to operate the
business.
Employees - correct answer ✔People hired by a business for a period of time to operate the business.
Expense - correct answer ✔Money or other value surrendered due to the sale of goods or services or
the operating of the business.
Interest - correct answer ✔The expense of using borrowed money for a period of time.
Net Income - correct answer ✔Operating profit less interest expense, computed as revenue, less
operating expenses, less interest expense.
For-profit business - correct answer ✔A business that attempts to create an exchange, or sale, where
revenue exceeds expenses, creating a profit.
