Accounting 101- Exam 1 Questions
with verified answers 2025/2026
types of business - ANS ✔✔sole proprietorship, partnership, corporation
sole proprietorship - ANS ✔✔single owner of a business
partnership - ANS ✔✔2 or more owners of a business
corporation - ANS ✔✔ownership evidenced by shares of stock
balance sheet - ANS ✔✔current financial condition that summarizes the assets, liabilities and
owners' equity at a specific time point
income statement - ANS ✔✔how a business performs with in a period of time; summarizes
revenues and expenses
statement of retained earnings - ANS ✔✔analysis of retained earnings with in time period;
summarizes the income earned and dividends paid
who uses the financial statements - ANS ✔✔creditors, current and potential owners, suppliers,
banks, government agencies, trade associates
assets - ANS ✔✔future economic benefits
liabilities - ANS ✔✔obligations of a business
with verified answers 2025/2026
types of business - ANS ✔✔sole proprietorship, partnership, corporation
sole proprietorship - ANS ✔✔single owner of a business
partnership - ANS ✔✔2 or more owners of a business
corporation - ANS ✔✔ownership evidenced by shares of stock
balance sheet - ANS ✔✔current financial condition that summarizes the assets, liabilities and
owners' equity at a specific time point
income statement - ANS ✔✔how a business performs with in a period of time; summarizes
revenues and expenses
statement of retained earnings - ANS ✔✔analysis of retained earnings with in time period;
summarizes the income earned and dividends paid
who uses the financial statements - ANS ✔✔creditors, current and potential owners, suppliers,
banks, government agencies, trade associates
assets - ANS ✔✔future economic benefits
liabilities - ANS ✔✔obligations of a business
