ACC 231 Chapter 1 Questions with
complete solution 2025/2026
Net Income - correct answer ✔Total revenues less total expenses
Financial Accounting - correct answer ✔provides information for decision makers outside of the
organization
Managerial Accounting - correct answer ✔Provides information for managers of the organization
Ethical duties - correct answer ✔Responsibilities of the members of society to each other
Revenues - correct answer ✔inflows of resources resulting from providing goods or services to
customers
Corporation - correct answer ✔Owned by stockholders whose liability is limited to the amount they
have invested in the business
Liability - correct answer ✔A debt payable to an outsider
Expenses - correct answer ✔Costs of doing business
Proprietorship - correct answer ✔A business organization form with a single owner who is personally
liable for all of the business's debts
Historical Cost Principle - correct answer ✔States that assets should be recorded at their actual cost on
the date of purchase
complete solution 2025/2026
Net Income - correct answer ✔Total revenues less total expenses
Financial Accounting - correct answer ✔provides information for decision makers outside of the
organization
Managerial Accounting - correct answer ✔Provides information for managers of the organization
Ethical duties - correct answer ✔Responsibilities of the members of society to each other
Revenues - correct answer ✔inflows of resources resulting from providing goods or services to
customers
Corporation - correct answer ✔Owned by stockholders whose liability is limited to the amount they
have invested in the business
Liability - correct answer ✔A debt payable to an outsider
Expenses - correct answer ✔Costs of doing business
Proprietorship - correct answer ✔A business organization form with a single owner who is personally
liable for all of the business's debts
Historical Cost Principle - correct answer ✔States that assets should be recorded at their actual cost on
the date of purchase
