Accounting 201 Final Exam
2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,entity a person, unit, organization or group
proprietorship business owned by one person
partnership business owned by two or more persons or entities
corporation business owned by one or more entities who own shares of stock in the business.
Separate entity than it's owners, limited liability
assets= liabilities + stockholder's equity
how to find net income revenue - expenses
how to find ending retained earnings beginning retained earnings + net income - dividends
how to find total stockholder's equity retained earnings + common stock
the 4 financial statements should be prepared in which income statement, statement of retained earnings, balance sheet, statement of cash
order flows
financial accounting is principally concerned with: reporting to external users
what do liquidity ratios measure the short term ability of a company to pay it's obligations as they are due and meet
unexpected cash needs
calculate current ratio current assets / current liabilites
, calculate working capital current assets - current liabilites
what is earnings per share (EPS), what does it measure, net income earned on each share of common stock; measures the company's
and how do you calculate profitability.
(net income - preferred stock dividends) / average common stock shares
outstanding
what do solvency ratios measures measure the ability of the company to survive over a long period of time
debt to total assets ratio definition & calculation measures the percentage of total financing provided by creditors.
total liabilities / total assets
free cash flow cash provided by operating activities adjusted for capital expenditures and
dividends paid
expense recognition principle (matching) requires...? that costs (expenses) be recognized in the same accounting period of their related
revenue
faithful representation info is complete, neutral, and free from error
going concern assumption principle that assumes the enterprise will continue into the foreseeable future
revenue recognition principle revenue is recognized in the time period of when it is earned, which is not always
the same time period it is recieved
cost of goods sold is recorded as an expense
2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,entity a person, unit, organization or group
proprietorship business owned by one person
partnership business owned by two or more persons or entities
corporation business owned by one or more entities who own shares of stock in the business.
Separate entity than it's owners, limited liability
assets= liabilities + stockholder's equity
how to find net income revenue - expenses
how to find ending retained earnings beginning retained earnings + net income - dividends
how to find total stockholder's equity retained earnings + common stock
the 4 financial statements should be prepared in which income statement, statement of retained earnings, balance sheet, statement of cash
order flows
financial accounting is principally concerned with: reporting to external users
what do liquidity ratios measure the short term ability of a company to pay it's obligations as they are due and meet
unexpected cash needs
calculate current ratio current assets / current liabilites
, calculate working capital current assets - current liabilites
what is earnings per share (EPS), what does it measure, net income earned on each share of common stock; measures the company's
and how do you calculate profitability.
(net income - preferred stock dividends) / average common stock shares
outstanding
what do solvency ratios measures measure the ability of the company to survive over a long period of time
debt to total assets ratio definition & calculation measures the percentage of total financing provided by creditors.
total liabilities / total assets
free cash flow cash provided by operating activities adjusted for capital expenditures and
dividends paid
expense recognition principle (matching) requires...? that costs (expenses) be recognized in the same accounting period of their related
revenue
faithful representation info is complete, neutral, and free from error
going concern assumption principle that assumes the enterprise will continue into the foreseeable future
revenue recognition principle revenue is recognized in the time period of when it is earned, which is not always
the same time period it is recieved
cost of goods sold is recorded as an expense
