Accounting 110 final UPDATED ACTUAL
Exam Questions and CORRECT Answers
Assets - CORRECT ANSWER - Resources owned by a business and what a business uses
to generate revenue.
Liabilities - CORRECT ANSWER - Obligations a business owes.
Retained Earnings - CORRECT ANSWER - Amount of profit a company has left over or
earnings a company has maintained over the years.
Financial Accounting - CORRECT ANSWER - Focus on external users, summarizes the
past, standards to follow, and financial statements.
Managerial Accounting - CORRECT ANSWER - Focus on internal users, emphasis on
future decisions, and no standards.
Investors - CORRECT ANSWER - Provides financial resources in exchange for
ownership interest in business.
Creditors - CORRECT ANSWER - Lend financial resources to a business with
expectation of repayment plus interest.
8
Revenue - CORRECT ANSWER - Money generated from normal business operations
Expense - CORRECT ANSWER - Money disbursed for normal business operations
Dividend (distribution) - CORRECT ANSWER - Distribution of assets (cash) generated
through earnings.
, C&C borrowed money to be able to purchase a new piece of equipment. What type of business
activity would the borrowing of money be classified as? - CORRECT ANSWER -
Financing
What form of business is for two or more individuals and they share the risks and rewards of the
business? - CORRECT ANSWER - Partnership
C&C generates revenue from different sources: sales revenue, bar revenue, and event space
revenue. All of these types of revenue are considered what type of business activity? -
CORRECT ANSWER - Operating
Grade: 0.5 out of 0.5 points possible
C&C decided they needed more space and purchased a new building to house their retail space.
What type of business activity does that describe? - CORRECT ANSWER - Investing
Paid cash to purchase land is what type of business activity? - CORRECT ANSWER -
Investing
Acquired cash from owners is what type of business activity? - CORRECT ANSWER -
Financing
C&C pays their production workers every two weeks. This would be considered what type of
business activity? - CORRECT ANSWER - Operating
All of the following are characteristics of a corporation except:
Separate legal entity
Easily transfer ownership
Partnership agreement
Stockholders not personally liable - CORRECT ANSWER - Partnership agreement
Exam Questions and CORRECT Answers
Assets - CORRECT ANSWER - Resources owned by a business and what a business uses
to generate revenue.
Liabilities - CORRECT ANSWER - Obligations a business owes.
Retained Earnings - CORRECT ANSWER - Amount of profit a company has left over or
earnings a company has maintained over the years.
Financial Accounting - CORRECT ANSWER - Focus on external users, summarizes the
past, standards to follow, and financial statements.
Managerial Accounting - CORRECT ANSWER - Focus on internal users, emphasis on
future decisions, and no standards.
Investors - CORRECT ANSWER - Provides financial resources in exchange for
ownership interest in business.
Creditors - CORRECT ANSWER - Lend financial resources to a business with
expectation of repayment plus interest.
8
Revenue - CORRECT ANSWER - Money generated from normal business operations
Expense - CORRECT ANSWER - Money disbursed for normal business operations
Dividend (distribution) - CORRECT ANSWER - Distribution of assets (cash) generated
through earnings.
, C&C borrowed money to be able to purchase a new piece of equipment. What type of business
activity would the borrowing of money be classified as? - CORRECT ANSWER -
Financing
What form of business is for two or more individuals and they share the risks and rewards of the
business? - CORRECT ANSWER - Partnership
C&C generates revenue from different sources: sales revenue, bar revenue, and event space
revenue. All of these types of revenue are considered what type of business activity? -
CORRECT ANSWER - Operating
Grade: 0.5 out of 0.5 points possible
C&C decided they needed more space and purchased a new building to house their retail space.
What type of business activity does that describe? - CORRECT ANSWER - Investing
Paid cash to purchase land is what type of business activity? - CORRECT ANSWER -
Investing
Acquired cash from owners is what type of business activity? - CORRECT ANSWER -
Financing
C&C pays their production workers every two weeks. This would be considered what type of
business activity? - CORRECT ANSWER - Operating
All of the following are characteristics of a corporation except:
Separate legal entity
Easily transfer ownership
Partnership agreement
Stockholders not personally liable - CORRECT ANSWER - Partnership agreement
