ACCOUNTING 200 EXAM 5 CERTIFICATION EVALUATION 2026 FULL QUESTIONS AND CORRECT ANSWERS

ACCOUNTING 200 EXAM 5 CERTIFICATION
EVALUATION 2026 FULL QUESTIONS AND
CORRECT ANSWERS

◉ Neg accruals Ratio.
Answer: Big Bath


◉ Positive accruals ratio.
Answer: Pumping income


◉ tax deductions.
Answer: reduces taxable income (before applying tax rates)


◉ tax credit.
Answer: reduces tax liability (after applying tax rates) (more
favorable then a tax deduction)


◉ average tax rate.
Answer: tax liability / taxable income


◉ effective tax rate.

, Answer: tax liability / all income


◉ preventative.
Answer: happens before fraud occurs


◉ detective.
Answer: happens after fraud occurs


◉ fraud triangle.
Answer: pressure, rationalization, opportunity


◉ equity statement.
Answer: common stock + APIC (actual paid-in capital) - treasury
stock + retained earnings = total equity


◉ treasury stock.
Answer: share buybacks. raises stock price and lowers owner equity


◉ operating cash flow.
Answer: SELL STUFF PAY BILLS


◉ SRPP.