ACC 231 Quiz 1 Question and answers
already passed 2025/2026
Which entity is charged with developing the accounting standards in the U.S? - correct answer
✔Financial Accounting Standards Board (FASB)
Whose mission is it to protect investors and maintain a fair and efficient stock market? - correct answer
✔Securities and Exchange Commission (SEC)
What is the Accounting Equation? - correct answer ✔Assets = Liabilities + Stockholders' Equity
What is an asset? - correct answer ✔A resource the company has the right to use in the future
What is a liability? - correct answer ✔A future obligation.
What does Revenue represent? - correct answer ✔The amount received for providing a good or service
to customers.
What does Stockholders' Equity represent? - correct answer ✔The value of the shareholders(owners)
interest in the company.
What is an expense? - correct answer ✔A resource used up or a cost incurred to provide goods and
services.
Revenues and expenses are found on which financial statement? - correct answer ✔The Income
Statement
already passed 2025/2026
Which entity is charged with developing the accounting standards in the U.S? - correct answer
✔Financial Accounting Standards Board (FASB)
Whose mission is it to protect investors and maintain a fair and efficient stock market? - correct answer
✔Securities and Exchange Commission (SEC)
What is the Accounting Equation? - correct answer ✔Assets = Liabilities + Stockholders' Equity
What is an asset? - correct answer ✔A resource the company has the right to use in the future
What is a liability? - correct answer ✔A future obligation.
What does Revenue represent? - correct answer ✔The amount received for providing a good or service
to customers.
What does Stockholders' Equity represent? - correct answer ✔The value of the shareholders(owners)
interest in the company.
What is an expense? - correct answer ✔A resource used up or a cost incurred to provide goods and
services.
Revenues and expenses are found on which financial statement? - correct answer ✔The Income
Statement
