Accounting 101 Final
Exam Study Guide 2026 |
Questions & Answers
Review and Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, external user financial accounting
who is responsible for GAAP FASB
accounting equation assets = liabilities + owners equity
international accounting standards board (IFRS) is developing a single set of worldwide accounting standards
responsible for
These standards will help companies to reduce (IFRS) international accounting standards board
accounting costs, make it easier to acquire foreign
companies, and facilitate comparisons between foreign
companies
primary objective of financial reporting provide economic information to permit users of the information to make
informed decisions
what makes information relevant it must be able to make a difference in a decision
assets are recorded at historical/original cost because it is objective and verifiable
financial information should be understandable to those willing to spend the necessary time to understand it
whom
balance sheet lists assets, liabilities, and owner's equity
income statement revenues minus expenses equal net income
net income revenues - expenses
order of statement preparation income statement, statement of retained earnings, balance sheet and
statement of cash flows
account and types of accounts a record or statement of financial expenditure or receipts relating to a
particular period or purpose
real, personal, and nominal
how transactions affect the accounting equation the balance is maintained because every business transaction affects at least
two of a company's accounts such as:
when a company borrows money from a bank
the company's assets will increase and its liabilities will increase by the same
amount
left side debit
right side credit
initial recording of transaction is made in a journal entry, journalizing this entry is then posted to ledger/general ledger
journal/general journal is
Exam Study Guide 2026 |
Questions & Answers
Review and Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, external user financial accounting
who is responsible for GAAP FASB
accounting equation assets = liabilities + owners equity
international accounting standards board (IFRS) is developing a single set of worldwide accounting standards
responsible for
These standards will help companies to reduce (IFRS) international accounting standards board
accounting costs, make it easier to acquire foreign
companies, and facilitate comparisons between foreign
companies
primary objective of financial reporting provide economic information to permit users of the information to make
informed decisions
what makes information relevant it must be able to make a difference in a decision
assets are recorded at historical/original cost because it is objective and verifiable
financial information should be understandable to those willing to spend the necessary time to understand it
whom
balance sheet lists assets, liabilities, and owner's equity
income statement revenues minus expenses equal net income
net income revenues - expenses
order of statement preparation income statement, statement of retained earnings, balance sheet and
statement of cash flows
account and types of accounts a record or statement of financial expenditure or receipts relating to a
particular period or purpose
real, personal, and nominal
how transactions affect the accounting equation the balance is maintained because every business transaction affects at least
two of a company's accounts such as:
when a company borrows money from a bank
the company's assets will increase and its liabilities will increase by the same
amount
left side debit
right side credit
initial recording of transaction is made in a journal entry, journalizing this entry is then posted to ledger/general ledger
journal/general journal is
