Acct 101 Exam 1 Reviewed
Questions And Answers
2025-2026 GRADED A+
Identify the users of financial information - ANS-banks, owners, suppliers,
customers
Entity has its own separate - ANS-identity
An entity whose entire purpose is to produce a profit for its owners is an - ANS-
economic entity
Funds taken from owner for personal use is - ANS-withdrawals
Income statement shows - ANS-revenue, expenses, net income
Balance sheet shows - ANS-assets, liabilities, owner's equity
Statement of Owner's Equity - ANS-A summary of the changes in owner's equity
that have occurred during a specific period of time, such as a month or a year.
Which is true in the preparation of financial statements - ANS-net income from
the income statement is placed into statement of owner's equity
the company or individuals that amounts are owed to are - ANS-creditors
Fundamental Accounting Equation - ANS-Assets = Liabilities + Owner's Equity
revenue - ANS-The amount of money that a company actually receives from
sales
, expenses - ANS-the cost that a business incurs in order to operate
accounting is called - ANS-the language of business
Accounting system - ANS-A process designed to accumulate, classify and
summarize financial data
Certified public accountant (CPA) - ANS-An independent accountant who provides
accounting services to the public for a fee
accounting - ANS-The process by which financial information about a business is
recorded, classified, summarized, interpreted, and communicated to owners,
managers, and other interested parties
bookkeeper - ANS-someone who records the transactions of a business
accountant - ANS-A person who plans, summarizes, analyzes, and interprets
accounting information.
accounting clerk - ANS-An accounting worker who processes routine details
about accounting transactions.
Which statements are true about SEC - ANS-SEC has final say on financial
accounting issues faced by publicly traded companies, can suspend trading of
company's shares
Auditing - ANS-The review of financial statements to assess their fairness and
adherence to generally accepted accounting practices
Sarbanes-Oxley Act includes which of the following provisions - ANS-prohibits
destruction or creation of documents to impede a federal investigation
Managerial Accounting - ANS-Accounting work carried on by an accountant
employed by a single business in industry, the branch of accounting that
provides financial
Questions And Answers
2025-2026 GRADED A+
Identify the users of financial information - ANS-banks, owners, suppliers,
customers
Entity has its own separate - ANS-identity
An entity whose entire purpose is to produce a profit for its owners is an - ANS-
economic entity
Funds taken from owner for personal use is - ANS-withdrawals
Income statement shows - ANS-revenue, expenses, net income
Balance sheet shows - ANS-assets, liabilities, owner's equity
Statement of Owner's Equity - ANS-A summary of the changes in owner's equity
that have occurred during a specific period of time, such as a month or a year.
Which is true in the preparation of financial statements - ANS-net income from
the income statement is placed into statement of owner's equity
the company or individuals that amounts are owed to are - ANS-creditors
Fundamental Accounting Equation - ANS-Assets = Liabilities + Owner's Equity
revenue - ANS-The amount of money that a company actually receives from
sales
, expenses - ANS-the cost that a business incurs in order to operate
accounting is called - ANS-the language of business
Accounting system - ANS-A process designed to accumulate, classify and
summarize financial data
Certified public accountant (CPA) - ANS-An independent accountant who provides
accounting services to the public for a fee
accounting - ANS-The process by which financial information about a business is
recorded, classified, summarized, interpreted, and communicated to owners,
managers, and other interested parties
bookkeeper - ANS-someone who records the transactions of a business
accountant - ANS-A person who plans, summarizes, analyzes, and interprets
accounting information.
accounting clerk - ANS-An accounting worker who processes routine details
about accounting transactions.
Which statements are true about SEC - ANS-SEC has final say on financial
accounting issues faced by publicly traded companies, can suspend trading of
company's shares
Auditing - ANS-The review of financial statements to assess their fairness and
adherence to generally accepted accounting practices
Sarbanes-Oxley Act includes which of the following provisions - ANS-prohibits
destruction or creation of documents to impede a federal investigation
Managerial Accounting - ANS-Accounting work carried on by an accountant
employed by a single business in industry, the branch of accounting that
provides financial
