Advanced ATI Accounting Questions and Answers 2026

ADVANCED ATI ACCOUNTING
QUESTIONS AND ANSWER
Preparing a budget for a business is considered

A. Financial acct.

B. Managerial acct. - CORRECT ANSWER -Managerial



Accounting is the information system that

A. Measures business activities

B. Communicates the results to decision makers

C. Process info into reports

D. All of the above - CORRECT ANSWER -All of the above



Which of the following is not an external user of a business's financial information

A. Taxing bauthorities

B. Customers

C. Employees

D. Investors b- bCORRECT bANSWER b-Employees



Which bstatement bbest bdescribes bthe baccounting bequation?

A. The bchange bin bretained bearnings bequals

bnetbincome bless bdividends.


B. Equality bof brevenue band bexpense

btransactionsbover btime.

,C. Financing bactivities bequal binvesting

bandboperating bactivities.


D. Resources bof bthe bcompany bequal bcreditors' band

owners' bclaims bto bthose bresources. b- bCORRECT bANSWER b-Resources bof bthe bcompany bequals
bcreditors bandbowners bclaims bto bthose bresources




Owners' bclaims bto bthe bcompany's


bresources barebreferred bto bas:


A. Liabilities.

B. Assets.

C. Stockholders' bequity.

D. Net bliabilities. b- bCORRECT bANSWER b-Stockholder's bEquity



If btotal bassets bof ba bcompany bequal


b$25,000 band btotal bstockholders' bequity


bequals b$10,000, bthen btotal bliabilities bequal


b$15,000.


A. True

B. False b- bCORRECT bANSWER b-True



Amounts bowed bto bsuppliers bfor bsupplies

bpurchased bon baccount bare bdefined bas


ba(n):


A. Revenue.

B. Asset.

C. Liability.

D. Expense. b- bCORRECT bANSWER b-Liability

,If btotal bliabilities bof ba bcompany bequal

b$29,000 band btotal bstockholders' bequity


bequals b$15,000,bthen btotal bassets bequal


b$14,000.


A. True

B. False b- bCORRECT bANSWER b-False



Financial baccounting bdoes bnot bdeal bwith bwhich bof bthe bfollowing?

A. Measuring ba bcompany's beconomic bactivity.

B. Providing binformation bto binternal busers.

C. Preparing bfinancial breports.

D. Communicating bfinancial bresults bto binvestors. b- bCORRECT bANSWER b-Providing binformation bto
binternalbusers




The baccounting bequation bshows bthat ba bcompany's bresources bequal bcreditors' band bowners'
bclaims bto bthosebresources.


A. True

B. False b- bCORRECT bANSWER b-True



An balternative bform bof bthe baccounting bequation bis:

A. Assets b‐Liabilities b= bStockholders' bEquity.

B. Net bIncome b= bRevenues b‐Expenses.

C. Stockholders' bEquity b= bAssets b+ bLiabilities.

D. Assets b= bLiabilities b‐Stockholders' bEquity. b- bCORRECT bANSWER b-Assets b- bLiabilities b=
bStockholder'sbEquity




Which bof bthe bfollowing bdoes bnot brepresent ban basset bof ba bcompany?

A. Supplies bheld bby bthe bcompany.

, B. Amounts bowed bto bsuppliers.

C. Equipment bowned band bused bfor boperations.

D. Amounts breceivable bfrom bcustomers. b- bCORRECT bANSWER b-Amounts bowed bto bsuppliers
b(liability)




The bamounts brecorded bwhen bthe bcompany bsells bproducts bor bprovides bservices bto bcustomers
bare breferredbto bas:


A. Liabilities

B. Revenues

C. Assets

D. Expenses b- bCORRECT bANSWER b-Revenues b(recorded bat bthe btime bthe bcompany bprovides bthe
bservice)




If ba bcompany bhas bstockholders' bequity bof b$25,000 bat bthe bend bof bthe byear, bwhich bof
bthe bfollowingbstatements bmust bbe btrue?


A. The bcompany bhas bissued b$25,000 bof bcommon bstock.

B. Net bincome bfor bthe byear bequals b$25,000.

C. The bcompany's bassets bexceed bliabilities bby b$25,000.

D. Total brevenues bduring bthe byear bequal b$25,000. b- bCORRECT bANSWER b-The bcompany's
bassets bexceedbliabilities bby b25,000




The bcosts bof bproviding bgoods band bservices bto bcustomers bare breferred bto bas:

A. Assets

B. Expenses

C. Liabilities

D. Revenues b- bCORRECT bANSWER b-Expenses



Table b- bCORRECT bANSWER b-Check bnotes