ACC 231 Uses of Accounting
Information - Exam 1 Question and
answers correctly solved 2025/2026
Accounting Cycle - correct answer ✔step-by-step process to record business activities and events to
keep financial records up to date
Accounts Payable (on account purchases or purchases on credit terms) - correct answer ✔value of
goods or services purchased that will be paid for at a later date (balance sheet)
Accounts Receivable (on account sales or sales on credit terms) - correct answer ✔outstanding
customer debt on a credit sale, typically receivable within a short time period (balance sheet)
Accrual Basis Accounting - correct answer ✔accounting system in which revenue is recorded or
recognized when earned yet not necessarily received, and in which expenses are recorded when legally
incurred and not necessarily when paid
Adjusting Entries - correct answer ✔update accounting records at the end of a period for any
transactions that have not yet been recorded (never include cash, will always have one debit and one
credit, always include one balance sheet account and one income statement account)
Assets - correct answer ✔tangible or intangible resources owned or controlled by a company,
individual, or other entity with the intent that it will provide economic value (long term assets are longer
than a year, current is less, balance sheet)
Balance Sheet - correct answer ✔financial statement that lists what the organization owns (assets),
owes (liabilities), and is worth (equity) on a specific date
Cash Basis Accounting - correct answer ✔method of accounting in which transactions are not recorded
in the financial statements until there is an exchange of cash
Information - Exam 1 Question and
answers correctly solved 2025/2026
Accounting Cycle - correct answer ✔step-by-step process to record business activities and events to
keep financial records up to date
Accounts Payable (on account purchases or purchases on credit terms) - correct answer ✔value of
goods or services purchased that will be paid for at a later date (balance sheet)
Accounts Receivable (on account sales or sales on credit terms) - correct answer ✔outstanding
customer debt on a credit sale, typically receivable within a short time period (balance sheet)
Accrual Basis Accounting - correct answer ✔accounting system in which revenue is recorded or
recognized when earned yet not necessarily received, and in which expenses are recorded when legally
incurred and not necessarily when paid
Adjusting Entries - correct answer ✔update accounting records at the end of a period for any
transactions that have not yet been recorded (never include cash, will always have one debit and one
credit, always include one balance sheet account and one income statement account)
Assets - correct answer ✔tangible or intangible resources owned or controlled by a company,
individual, or other entity with the intent that it will provide economic value (long term assets are longer
than a year, current is less, balance sheet)
Balance Sheet - correct answer ✔financial statement that lists what the organization owns (assets),
owes (liabilities), and is worth (equity) on a specific date
Cash Basis Accounting - correct answer ✔method of accounting in which transactions are not recorded
in the financial statements until there is an exchange of cash
