CHAPTER 1 (HORNGREN’S ACCOUNTING 11TH EDITION) EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+ 2025 – 2026
Accounting - ANSWER-The information system that measures business activities, processes the
information into reports, and communicates the results to decision makers.
Financial Accounting - ANSWER-The field of accounting that focuses on providing information
for external decision makers.
Managerial Accounting - ANSWER-The field of accounting that focuses on providing
information for internal decision makers.
Certified Management Accountants (CMAs) - ANSWER-Certified professionals who specialize in
accounting and financial management knowledge. They typically work for a single company.
Revenues - ANSWER-Amounts earned from delivering goods or services to customers.
Transaction - ANSWER-An event that affects the financial position of the business and can be
measured with faithful representation.
Common Stock - ANSWER-Represents the basic ownership of a corporation.
Contributed Capital - ANSWER-Owner contributions to a corporation.
, Retained Earnings - ANSWER-Equity earned by profitable operations of a corporation that is
not distributed to stockholders.
Accounts Payable - ANSWER-A short-term liability that will be paid in the future.
Accounts Receivable - ANSWER-The right to receive cash in the future from customers for
goods sold or for services performed.
Financial Statements - ANSWER-Business documents that are used to communicate
information needed to make business decisions.
Income Statement - ANSWER-Reports the net income or net loss of the business for a specific
period.
Statement of Owner's Equity - ANSWER-Shows the changes in the owner's capital account for a
specific period.
Certified Public Accountants (CPAs) - ANSWER-Licensed professional accountants who serve
the general public.
Creditor - ANSWER-Any person or business to whom a business owes money.
Corporation - ANSWER-A business organized under state law that is a separate legal entity.
Economic Entity Assumption - ANSWER-An organization that stands apart as a separate
economic unit.
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+ 2025 – 2026
Accounting - ANSWER-The information system that measures business activities, processes the
information into reports, and communicates the results to decision makers.
Financial Accounting - ANSWER-The field of accounting that focuses on providing information
for external decision makers.
Managerial Accounting - ANSWER-The field of accounting that focuses on providing
information for internal decision makers.
Certified Management Accountants (CMAs) - ANSWER-Certified professionals who specialize in
accounting and financial management knowledge. They typically work for a single company.
Revenues - ANSWER-Amounts earned from delivering goods or services to customers.
Transaction - ANSWER-An event that affects the financial position of the business and can be
measured with faithful representation.
Common Stock - ANSWER-Represents the basic ownership of a corporation.
Contributed Capital - ANSWER-Owner contributions to a corporation.
, Retained Earnings - ANSWER-Equity earned by profitable operations of a corporation that is
not distributed to stockholders.
Accounts Payable - ANSWER-A short-term liability that will be paid in the future.
Accounts Receivable - ANSWER-The right to receive cash in the future from customers for
goods sold or for services performed.
Financial Statements - ANSWER-Business documents that are used to communicate
information needed to make business decisions.
Income Statement - ANSWER-Reports the net income or net loss of the business for a specific
period.
Statement of Owner's Equity - ANSWER-Shows the changes in the owner's capital account for a
specific period.
Certified Public Accountants (CPAs) - ANSWER-Licensed professional accountants who serve
the general public.
Creditor - ANSWER-Any person or business to whom a business owes money.
Corporation - ANSWER-A business organized under state law that is a separate legal entity.
Economic Entity Assumption - ANSWER-An organization that stands apart as a separate
economic unit.
