Accounting 231 Question and answers
verified to pass 2025/2026
an accounting tool that summarizes all accounts and their associated balances - correct answer ✔Trial
Balance
Carlos & John's Fishing Supplies purchased fishing poles from a vendor. If the goods were shipped FOB
Shipping Point, who made arrangements for the transportation? - correct answer ✔the buyer, Carlos &
John's Fishing Supplies
First prepared financial statement - correct answer ✔Income Statement
Second prepared financial statement - correct answer ✔Statement of Owner's Equity / Statement of
Retained Earnings
Third prepared financial statement - correct answer ✔Balance Sheet
Last prepared financial statement - correct answer ✔Statement of Cash Flows
What accounts are found in the Income Statement - correct answer ✔Revenues, Expenses,
Gains/Losses
What accounts are found in the Statement of Owner's Equity - correct answer ✔Owner Contributions,
Plus Net Income (Loss), Owner Withdrawals
What accounts are found in the Statement of Retained Earnings - correct answer ✔Dividends, Net
Income, Retained Earnings (Stock is NOT in the SORE)
, What accounts are found in the Statement of Financial Position - correct answer ✔Assets, Liabilities
and Owner's Equity
What accounts are used in the Statement of Cash Flows - correct answer ✔Operating sources, investing
sources, financing sources that deal with cash
Ratio used for product pricing decisions, marketing strategies - correct answer ✔Profit Ratios
Profit Ratios (5) - correct answer ✔Gross Margin
Return on Sales
Earnings per Share
Return on Assets
Return on Equity
Solvency Ratios also known as _________ - correct answer ✔Coverage Ratios, Banker's Ratios, Liquidity
Ratios
This ratio evaluates a company's ability to meet short term obligations (i.e. pay bills) - correct answer
✔Solvency Ratios
Solvency Ratios (3) - correct answer ✔Current Ratio
Quick Ratio
Debt to Equity Ratio
This ratio evaluates the efficiency of a company's operations (Conversion cycle) - correct answer
✔Activity Ratios
verified to pass 2025/2026
an accounting tool that summarizes all accounts and their associated balances - correct answer ✔Trial
Balance
Carlos & John's Fishing Supplies purchased fishing poles from a vendor. If the goods were shipped FOB
Shipping Point, who made arrangements for the transportation? - correct answer ✔the buyer, Carlos &
John's Fishing Supplies
First prepared financial statement - correct answer ✔Income Statement
Second prepared financial statement - correct answer ✔Statement of Owner's Equity / Statement of
Retained Earnings
Third prepared financial statement - correct answer ✔Balance Sheet
Last prepared financial statement - correct answer ✔Statement of Cash Flows
What accounts are found in the Income Statement - correct answer ✔Revenues, Expenses,
Gains/Losses
What accounts are found in the Statement of Owner's Equity - correct answer ✔Owner Contributions,
Plus Net Income (Loss), Owner Withdrawals
What accounts are found in the Statement of Retained Earnings - correct answer ✔Dividends, Net
Income, Retained Earnings (Stock is NOT in the SORE)
, What accounts are found in the Statement of Financial Position - correct answer ✔Assets, Liabilities
and Owner's Equity
What accounts are used in the Statement of Cash Flows - correct answer ✔Operating sources, investing
sources, financing sources that deal with cash
Ratio used for product pricing decisions, marketing strategies - correct answer ✔Profit Ratios
Profit Ratios (5) - correct answer ✔Gross Margin
Return on Sales
Earnings per Share
Return on Assets
Return on Equity
Solvency Ratios also known as _________ - correct answer ✔Coverage Ratios, Banker's Ratios, Liquidity
Ratios
This ratio evaluates a company's ability to meet short term obligations (i.e. pay bills) - correct answer
✔Solvency Ratios
Solvency Ratios (3) - correct answer ✔Current Ratio
Quick Ratio
Debt to Equity Ratio
This ratio evaluates the efficiency of a company's operations (Conversion cycle) - correct answer
✔Activity Ratios
