ACC 1O1/102/202
ACC/FIN/110.
Accounting
CPA 2026/2027 BUSINESS
, ACC 101 Midterm Exam
questions with correct answers
2026/2027 Edition Graded A+
Order of the financial statements of a corporation
1)Income Statement
2)Statement of Stockholders' Equity
3)Balance Sheet
4)Statement of Cash Flows
What statements represent data from a period of time
Income Statement
Statement of Stockholders' Equity
Statement of Cash Flows
What statements represent data for a specific date
Balance Sheet
Why would a company report a retained earnings statement
When they have very few or no common stock transactions
What is a report form
,The vertical reporting of a balance sheet
What is an organization in which basic resources (inputs), like
materials and labor, are assembled and processed to provide goods or
services (outputs) to customers
A business
What is the objective of a business
to earn profit
What is profit
Amounts received from customers for goods or services and
amounts paid for the inputs used to provide the goods or services
What are the types of businesses
service, merchandising, manufacturing
...... is an information system that collects financial information and
provides reports to users about the economic activities and condition
of a business
Accounting
What is the objective of accounting
to provide relevant, timely information for decision making for
internal or external users
Who are internal users
employees and managers
What type of accounting is used for internal users
Managerial accounting
, Information on pricing, production, quality, customer, and other day-
to-day activities are provided through what type of accounting
Managerial
Who are external users
creditors, investors, suppliers, customer, and government
What kind of accounting is used for external users
Financial accounting
Reports that show a business's financial performance are provided
through what kind of accounting
Financial accounting
What act monitors the behavior of accounting and business
Sarbanes-Oxley Act (SOX)
What board did the Sarbanes-Oxley Act establish
Public Company Accounting Oversight Board (PCAOB)
What act established standards for independence, corporate
responsibility, and disclosure.
Sarbanes-Oxley Act (SOX)
Accountants and their staff who provide services on afee basis are
employed in
public accounting
Accountants employed by a business are employed in
private accounting
Financial information in the United States is based on
ACC/FIN/110.
Accounting
CPA 2026/2027 BUSINESS
, ACC 101 Midterm Exam
questions with correct answers
2026/2027 Edition Graded A+
Order of the financial statements of a corporation
1)Income Statement
2)Statement of Stockholders' Equity
3)Balance Sheet
4)Statement of Cash Flows
What statements represent data from a period of time
Income Statement
Statement of Stockholders' Equity
Statement of Cash Flows
What statements represent data for a specific date
Balance Sheet
Why would a company report a retained earnings statement
When they have very few or no common stock transactions
What is a report form
,The vertical reporting of a balance sheet
What is an organization in which basic resources (inputs), like
materials and labor, are assembled and processed to provide goods or
services (outputs) to customers
A business
What is the objective of a business
to earn profit
What is profit
Amounts received from customers for goods or services and
amounts paid for the inputs used to provide the goods or services
What are the types of businesses
service, merchandising, manufacturing
...... is an information system that collects financial information and
provides reports to users about the economic activities and condition
of a business
Accounting
What is the objective of accounting
to provide relevant, timely information for decision making for
internal or external users
Who are internal users
employees and managers
What type of accounting is used for internal users
Managerial accounting
, Information on pricing, production, quality, customer, and other day-
to-day activities are provided through what type of accounting
Managerial
Who are external users
creditors, investors, suppliers, customer, and government
What kind of accounting is used for external users
Financial accounting
Reports that show a business's financial performance are provided
through what kind of accounting
Financial accounting
What act monitors the behavior of accounting and business
Sarbanes-Oxley Act (SOX)
What board did the Sarbanes-Oxley Act establish
Public Company Accounting Oversight Board (PCAOB)
What act established standards for independence, corporate
responsibility, and disclosure.
Sarbanes-Oxley Act (SOX)
Accountants and their staff who provide services on afee basis are
employed in
public accounting
Accountants employed by a business are employed in
private accounting
Financial information in the United States is based on
