ACC 311 EXAM QUESTIONS WITH 100%
CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Accrual Accounting - ANS Focused on representing the underlying business transactions.
Here, revenue is recorded when it is earned, not when it is received as cash, and expense is
recorded when it is incurred, not when it is payed in cash.
Cash accounting - ANS managing a bank account.
Journal entries - ANS records of specific business transactions.
Must follow the accounting equations, Assets = Liabilities + equity.
Income Statement - ANS Profit and loss statement
Shows how revenues earned during a period and the expenses incurred during that same
period.
Revenues - Expenses = Net Income.
Shows revenues earned during a period and the expenses incurred.
Measure performance and flows.
Revenue - ANS The value we create for our customers
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Recorded when we have done something for a customer who wanted us to do it and we have
some form of agreement on price and collection.
When cash comes on that increases Net Worth
Is a flow. They are increases and decreases in net worth during the accounting period
Expenses - ANS Divided into operating expenses and other expenses
When cash goes out that decreases net worth
Is. a flow. They are increases and decreases in net worth during the accounting period
Balance Sheets - ANS Statement of position. Shows a companies assets, liabilites, and equity
at a specific point in time - the end of an accouting period.
Assets = Liabilities + equity
Reports stocks and current position
Assets - ANS Represent the items for which we have a right to an expected future benefit.
Is a stock account that measures what we own, owe or the net of the 2 at a point in time.
Liability's - ANS Represent the obligations that we have incurred based on past transactions
and for which we must make some sacrifice to settle.
Is a stock account that measures what we own, owe or the net of the 2 at a point in time.
Accounts Receivable - ANS Estimate of future cash we will collect from out customers based
on out sales.
Accounts Payable - ANS Estimate of future cash we will pay to our suppliers.
Statement of Cash Flows - ANS Works with the Income statement and Balance sheet.
Elaborates on specific inflows and outflows of cash.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Accrual Accounting - ANS Focused on representing the underlying business transactions.
Here, revenue is recorded when it is earned, not when it is received as cash, and expense is
recorded when it is incurred, not when it is payed in cash.
Cash accounting - ANS managing a bank account.
Journal entries - ANS records of specific business transactions.
Must follow the accounting equations, Assets = Liabilities + equity.
Income Statement - ANS Profit and loss statement
Shows how revenues earned during a period and the expenses incurred during that same
period.
Revenues - Expenses = Net Income.
Shows revenues earned during a period and the expenses incurred.
Measure performance and flows.
Revenue - ANS The value we create for our customers
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Recorded when we have done something for a customer who wanted us to do it and we have
some form of agreement on price and collection.
When cash comes on that increases Net Worth
Is a flow. They are increases and decreases in net worth during the accounting period
Expenses - ANS Divided into operating expenses and other expenses
When cash goes out that decreases net worth
Is. a flow. They are increases and decreases in net worth during the accounting period
Balance Sheets - ANS Statement of position. Shows a companies assets, liabilites, and equity
at a specific point in time - the end of an accouting period.
Assets = Liabilities + equity
Reports stocks and current position
Assets - ANS Represent the items for which we have a right to an expected future benefit.
Is a stock account that measures what we own, owe or the net of the 2 at a point in time.
Liability's - ANS Represent the obligations that we have incurred based on past transactions
and for which we must make some sacrifice to settle.
Is a stock account that measures what we own, owe or the net of the 2 at a point in time.
Accounts Receivable - ANS Estimate of future cash we will collect from out customers based
on out sales.
Accounts Payable - ANS Estimate of future cash we will pay to our suppliers.
Statement of Cash Flows - ANS Works with the Income statement and Balance sheet.
Elaborates on specific inflows and outflows of cash.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
