ACCT 2101 exam 1 review (2025/2026)
questions n answers
Financial accounting serves which primary function(s)?
I. measure business activities
II. communicate business activities to interested parties
III. makes business decisions on behalf of interested parties - CORRECT ANSWER ✔✔I and II
Which of the following best describes financial accounting?
a. math procedure
b. artistic presentation
c. behavioral psychology
d. info measurement/communication process - CORRECT ANSWER ✔✔info
measurement/communicationprocess
Based on the intro section of this chapter, which course is most like financial accounting?
a. college algebra
b. foreign language
c. physical language
d. molecular biology - CORRECT ANSWER ✔✔foreign language
Based on the intro section of this chapter, financial accounting can also be described as a way to
a. calculate the amount of taxes owed to the gov't
b. measure the personal net worth of stockholders
c. tell the financial story of a company
,d. determine employee satisfaction w/ their work environment - CORRECT ANSWER ✔✔tell the
financial story of a company
Financial accounting is often referred to as a
a. language of business
b. internal reporting structure
c. math system of equations
d. tax allocation system - CORRECT ANSWER ✔✔language of business
In which financial statement does a company report its expenses?
a. statement of stockholders' equity
b. income statement
c. balance sheet
d. statement of cash flows - CORRECT ANSWER ✔✔income statement
Which of the following equations correctly represents the fundamental accounting equation? -
CORRECT ANSWER ✔✔assets = liabilities + stockholders' equity
Expenses represent
a. sales of products or services to customers
b. cash paid for the purchase of the company's long-term resources
c. cash paid to investors
d. costs of providing products or services to customers - CORRECT ANSWER ✔✔costs of
providing products or services to customers
Sales of products or services are often referred to as - CORRECT ANSWER ✔✔revenues
, In which financial statement does a company report its revenues?
a. statement of stockholders' equity
b. income statement
c. balance sheet
d. statement of cash flows - CORRECT ANSWER ✔✔income statement
A company reports the following in its balance sheet: total assets of $800,000 and total
liabilities of $700,000. Which of the following is true? - CORRECT ANSWER ✔✔total
stockholders' equity = $100,000
Which single piece of info best explains most companies' stock price performance?
a. geographic location
b. net income
c. total # of employees
d. total sales to customers - CORRECT ANSWER ✔✔net income
Why does financial accounting have a positive impact on our society? - CORRECT ANSWER ✔✔it
allows investors and creditors to redirect their resources to successful companies and away
from unsuccessful companies
Financial accounting info is essential to
a. quality of work environment for employees
b. marketing the company's products to customers
c. paying the appropriate amount of taxes
d. making good business decisions - CORRECT ANSWER ✔✔making good business decisions
Traditional careers in public accounting include
questions n answers
Financial accounting serves which primary function(s)?
I. measure business activities
II. communicate business activities to interested parties
III. makes business decisions on behalf of interested parties - CORRECT ANSWER ✔✔I and II
Which of the following best describes financial accounting?
a. math procedure
b. artistic presentation
c. behavioral psychology
d. info measurement/communication process - CORRECT ANSWER ✔✔info
measurement/communicationprocess
Based on the intro section of this chapter, which course is most like financial accounting?
a. college algebra
b. foreign language
c. physical language
d. molecular biology - CORRECT ANSWER ✔✔foreign language
Based on the intro section of this chapter, financial accounting can also be described as a way to
a. calculate the amount of taxes owed to the gov't
b. measure the personal net worth of stockholders
c. tell the financial story of a company
,d. determine employee satisfaction w/ their work environment - CORRECT ANSWER ✔✔tell the
financial story of a company
Financial accounting is often referred to as a
a. language of business
b. internal reporting structure
c. math system of equations
d. tax allocation system - CORRECT ANSWER ✔✔language of business
In which financial statement does a company report its expenses?
a. statement of stockholders' equity
b. income statement
c. balance sheet
d. statement of cash flows - CORRECT ANSWER ✔✔income statement
Which of the following equations correctly represents the fundamental accounting equation? -
CORRECT ANSWER ✔✔assets = liabilities + stockholders' equity
Expenses represent
a. sales of products or services to customers
b. cash paid for the purchase of the company's long-term resources
c. cash paid to investors
d. costs of providing products or services to customers - CORRECT ANSWER ✔✔costs of
providing products or services to customers
Sales of products or services are often referred to as - CORRECT ANSWER ✔✔revenues
, In which financial statement does a company report its revenues?
a. statement of stockholders' equity
b. income statement
c. balance sheet
d. statement of cash flows - CORRECT ANSWER ✔✔income statement
A company reports the following in its balance sheet: total assets of $800,000 and total
liabilities of $700,000. Which of the following is true? - CORRECT ANSWER ✔✔total
stockholders' equity = $100,000
Which single piece of info best explains most companies' stock price performance?
a. geographic location
b. net income
c. total # of employees
d. total sales to customers - CORRECT ANSWER ✔✔net income
Why does financial accounting have a positive impact on our society? - CORRECT ANSWER ✔✔it
allows investors and creditors to redirect their resources to successful companies and away
from unsuccessful companies
Financial accounting info is essential to
a. quality of work environment for employees
b. marketing the company's products to customers
c. paying the appropriate amount of taxes
d. making good business decisions - CORRECT ANSWER ✔✔making good business decisions
Traditional careers in public accounting include
