ACC 701- Correct answers only 2024
Alternate: balance sheet - Correct Answer-Statement of Financial Position
Alternate: Cost Principle - Correct Answer-Original Cost or Historical Cost
Alternate: Creditor - Correct Answer-Lender
Alternate: Income Statement - Correct Answer-Statement of Income or Statement of
Operations
Alternate: Net Income - Correct Answer-Profits or Earnings
Alternate: Stockholder - Correct Answer-Shareholder
Alternate: Stockholders Equity - Correct Answer-Shareholders Equity
Business - Correct Answer-All of the activities necessary to provide the members of an
economic system with goods and services
Business entity - Correct Answer-An organization operated to earn a profit
Sole Proprietorship - Correct Answer-A form of organization with a single owner
Economic Entity Concept - Correct Answer-The assumption that a single, identifiable
unit must be accounted for in all situations
Partnership - Correct Answer-A business owned by two or more individuals, the
organization form often used by accounting firms and law firms
Corporation - Correct Answer-A form of entity organized under the laws of a particular
state; ownership evidenced by shares of stock
Share of Stock - Correct Answer-A certificate that acts as evidence of ownership in a
corporation
Bond - Correct Answer-A certificate that represents a corporations promise to repay a
certain amount of money and interest in the future
Nonbusiness entity - Correct Answer-An organization operated for some purpose other
that to earn a profit
Liability - Correct Answer-An obligation of a business
Capital Stock - Correct Answer-Indicates the owners contributions to a corporation
, Stockholder - Correct Answer-One of the owners of a corporation
Creditor - Correct Answer-Someone to whom a company or person has a debt
Asset - Correct Answer-A future economic benefit
Revenue - Correct Answer-An inflow of assets resulting from the sale of goods and
services
Expense - Correct Answer-An outflow of assets resulting from the sale of goods and
services
Accounting - Correct Answer-The process of identifying, measuring, and communicating
economic information to various user
Management Accounting - Correct Answer-The branch of accounting concerned with
providing management with information to facilitate the planning and control functions
Financial Accounting - Correct Answer-The branch of accounting involving
communication with outsiders through financial statements
Owners equity - Correct Answer-The owners claims to the assets of entity
Stockholders equity - Correct Answer-The owners equity of a corporation
Retained earnings - Correct Answer-The part of owners equity that represents the
income earned less dividends paid over the life of an entity
Balance sheet - Correct Answer-The financial statement that summarizes the assets,
liabilities, and owners equity at a specific point in time
income statement - Correct Answer-A statement that summarizes revenues and
expenses for a period of time
Net income - Correct Answer-The excess of revenues over expenses
Statement of retained earnings - Correct Answer-The statement that summarizes the
income earned and dividends paid over the life of a business
Dividends - Correct Answer-A distribution of the net income of a business to its
stockholders
Statement of cash flows - Correct Answer-The financial statement that summarizes a
companies cash receipts and cash payments during the period from operating,
investing, and financing activities
Alternate: balance sheet - Correct Answer-Statement of Financial Position
Alternate: Cost Principle - Correct Answer-Original Cost or Historical Cost
Alternate: Creditor - Correct Answer-Lender
Alternate: Income Statement - Correct Answer-Statement of Income or Statement of
Operations
Alternate: Net Income - Correct Answer-Profits or Earnings
Alternate: Stockholder - Correct Answer-Shareholder
Alternate: Stockholders Equity - Correct Answer-Shareholders Equity
Business - Correct Answer-All of the activities necessary to provide the members of an
economic system with goods and services
Business entity - Correct Answer-An organization operated to earn a profit
Sole Proprietorship - Correct Answer-A form of organization with a single owner
Economic Entity Concept - Correct Answer-The assumption that a single, identifiable
unit must be accounted for in all situations
Partnership - Correct Answer-A business owned by two or more individuals, the
organization form often used by accounting firms and law firms
Corporation - Correct Answer-A form of entity organized under the laws of a particular
state; ownership evidenced by shares of stock
Share of Stock - Correct Answer-A certificate that acts as evidence of ownership in a
corporation
Bond - Correct Answer-A certificate that represents a corporations promise to repay a
certain amount of money and interest in the future
Nonbusiness entity - Correct Answer-An organization operated for some purpose other
that to earn a profit
Liability - Correct Answer-An obligation of a business
Capital Stock - Correct Answer-Indicates the owners contributions to a corporation
, Stockholder - Correct Answer-One of the owners of a corporation
Creditor - Correct Answer-Someone to whom a company or person has a debt
Asset - Correct Answer-A future economic benefit
Revenue - Correct Answer-An inflow of assets resulting from the sale of goods and
services
Expense - Correct Answer-An outflow of assets resulting from the sale of goods and
services
Accounting - Correct Answer-The process of identifying, measuring, and communicating
economic information to various user
Management Accounting - Correct Answer-The branch of accounting concerned with
providing management with information to facilitate the planning and control functions
Financial Accounting - Correct Answer-The branch of accounting involving
communication with outsiders through financial statements
Owners equity - Correct Answer-The owners claims to the assets of entity
Stockholders equity - Correct Answer-The owners equity of a corporation
Retained earnings - Correct Answer-The part of owners equity that represents the
income earned less dividends paid over the life of an entity
Balance sheet - Correct Answer-The financial statement that summarizes the assets,
liabilities, and owners equity at a specific point in time
income statement - Correct Answer-A statement that summarizes revenues and
expenses for a period of time
Net income - Correct Answer-The excess of revenues over expenses
Statement of retained earnings - Correct Answer-The statement that summarizes the
income earned and dividends paid over the life of a business
Dividends - Correct Answer-A distribution of the net income of a business to its
stockholders
Statement of cash flows - Correct Answer-The financial statement that summarizes a
companies cash receipts and cash payments during the period from operating,
investing, and financing activities
