Pre-Assessment Principles
of Accounting 2026 | Study
Guide & Practice
Questions & Review and
Rationales
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success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, What is the impact of expenses on the accounting Expenses decrease owners' equity.
equation?
Which type of account are accounts payable and notes Liability
payable both examples of?
Asset
Equity
Expense
Liability
What is the purpose of the financial accounting cycle? To turn information about transactions into financial statements
To turn information about transactions into financial
statements
To gather information related to the expenses and
income generated by a company
To produce and analyze a company's monthly bank
statement
To collect confidential information for management to
use as a competitive tool
According to the accounting equation, the amount of Assets
liabilities and equity must always be equal to another
amount.
What is that other amount?
Which item is an expense item? Cost of goods sold
How is gross profit computed? Sales minus cost of goods sold
Which type of account is retained earnings? Equity
Revenue
Asset
Liability
Equity
For purposes of cash flow classification in the Paying employees
statement of cash flows, which item is an operating
activity?
of Accounting 2026 | Study
Guide & Practice
Questions & Review and
Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, What is the impact of expenses on the accounting Expenses decrease owners' equity.
equation?
Which type of account are accounts payable and notes Liability
payable both examples of?
Asset
Equity
Expense
Liability
What is the purpose of the financial accounting cycle? To turn information about transactions into financial statements
To turn information about transactions into financial
statements
To gather information related to the expenses and
income generated by a company
To produce and analyze a company's monthly bank
statement
To collect confidential information for management to
use as a competitive tool
According to the accounting equation, the amount of Assets
liabilities and equity must always be equal to another
amount.
What is that other amount?
Which item is an expense item? Cost of goods sold
How is gross profit computed? Sales minus cost of goods sold
Which type of account is retained earnings? Equity
Revenue
Asset
Liability
Equity
For purposes of cash flow classification in the Paying employees
statement of cash flows, which item is an operating
activity?
