ACC 221 EXAM 1 2026 2027 VERIFIED
ANSWERS ACTUAL UPDATED
PRACTICE QUESTIONS HIGH YIELD
STUDY GUIDE EXAM PREP MATERIAL
LATEST VERSION REAL EXAM
QUESTIONS AND ANSWERS GRADED
A+ SUCCESS PACK REVIEW EDITION
1. Accounting Equation: Assets = Liabilities + Owner's Equity
2. Assets: money and other valuables belonging to an individual or business
3. Liabilities: Claims to cash by non-owners
4. Owner's Equity: claims to cash by owner
5. What increases and decreases for assets?: Debit - increases Credit - decreases
6. What increases and decreases for liabilities?: Debit - decreases Credit -
increases
7. What increases and decreases for owner's equity?: Debit - decreases Credit -
increases
8. General Journal: the first thing to record an entry into an account
9. Journal Entry: what we call making an entry into a general journal
10. Posting the entry: moving the entry from General Journal into accounts
11. Period of Assumption: accounting period, how often accountant goes through the
system of accounting
12. Accural basis: business transactions are recorded in the accounting period that they
take place in
13. Entity Assumption: only record the company's transaction in accounts
14. monetary unit assumption: can only add items that can be stated in terms of
dollars
,
, 15. going concern assumption: assume company will stay in business for a long time
16. cost principle: record transaction at cost
17. Retained Earnings: an owner's claim-to-assets account that is increased when the
operations of the business results in an increase in the owner's claims to assets and
decreased when account when the operation of the business results in a decrease in
the owner's claim to assets
18. Common Stock: when the owner puts money into the business the claim is in this
account
19. Income statement: profits from operating a business
20. Making a sale on a credit: extending credit to a customer (when they can't pay at
the moment but will pay later)
21. Accounts Receivable: The right to receive cash in the future from customers for
goods sold or for services performed.
22. Paying Wages effects on ledger: reduces owner's equity and assets by the same
amount
23. Adjusting entry: An entry made at the end of the accounting period that is used to
record revenues to the period in which they are earned and expenses to the period in
which they occur.
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ANSWERS ACTUAL UPDATED
PRACTICE QUESTIONS HIGH YIELD
STUDY GUIDE EXAM PREP MATERIAL
LATEST VERSION REAL EXAM
QUESTIONS AND ANSWERS GRADED
A+ SUCCESS PACK REVIEW EDITION
1. Accounting Equation: Assets = Liabilities + Owner's Equity
2. Assets: money and other valuables belonging to an individual or business
3. Liabilities: Claims to cash by non-owners
4. Owner's Equity: claims to cash by owner
5. What increases and decreases for assets?: Debit - increases Credit - decreases
6. What increases and decreases for liabilities?: Debit - decreases Credit -
increases
7. What increases and decreases for owner's equity?: Debit - decreases Credit -
increases
8. General Journal: the first thing to record an entry into an account
9. Journal Entry: what we call making an entry into a general journal
10. Posting the entry: moving the entry from General Journal into accounts
11. Period of Assumption: accounting period, how often accountant goes through the
system of accounting
12. Accural basis: business transactions are recorded in the accounting period that they
take place in
13. Entity Assumption: only record the company's transaction in accounts
14. monetary unit assumption: can only add items that can be stated in terms of
dollars
,
, 15. going concern assumption: assume company will stay in business for a long time
16. cost principle: record transaction at cost
17. Retained Earnings: an owner's claim-to-assets account that is increased when the
operations of the business results in an increase in the owner's claims to assets and
decreased when account when the operation of the business results in a decrease in
the owner's claim to assets
18. Common Stock: when the owner puts money into the business the claim is in this
account
19. Income statement: profits from operating a business
20. Making a sale on a credit: extending credit to a customer (when they can't pay at
the moment but will pay later)
21. Accounts Receivable: The right to receive cash in the future from customers for
goods sold or for services performed.
22. Paying Wages effects on ledger: reduces owner's equity and assets by the same
amount
23. Adjusting entry: An entry made at the end of the accounting period that is used to
record revenues to the period in which they are earned and expenses to the period in
which they occur.
1/5
,
