ACC 101 Exam questions and
answers 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
tax accounting involves which activities - ANS✅✅tax planning and tax compliance
MANAGERIAL ADVISORY SERVICES - ANS✅✅Services designed to help clients improve their
information systems or business performance
answers 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
tax accounting involves which activities - ANS✅✅tax planning and tax compliance
MANAGERIAL ADVISORY SERVICES - ANS✅✅Services designed to help clients improve their
information systems or business performance
