ACCOUNTING_101_IVY_TECH_COMPREHENSIVE_FINAL_TEST_2026_QUESTIONS.

ACCOUNTING 101 IVY TECH
COMPREHENSIVE FINAL TEST 2026
QUESTIONS AND COMPLETE SOLUTIONS
EXPERT VERIFIED GRADED A+

⩥ What is accounting?
Answer: An information system that collects and reports financial data
to decision-makers


⩥ Who are external users of accounting information?
Answer: Investors and creditors


⩥ Who are internal users of accounting information?
Answer: Managers


⩥ What does financial accounting focus on?
Answer: Financial statements for external users


⩥ What does managerial accounting focus on?
Answer: Internal reports for decision-making


⩥ What are the three business activities?

, Answer: Operating, investing, financing


⩥ What are operating activities?
Answer: Day-to-day revenue and expense activities


⩥ What are investing activities?
Answer: Buying and selling long-term assets


⩥ What are financing activities?
Answer: Borrowing money or issuing stock


⩥ What is the accounting equation?
Answer: Assets = Liabilities + Equity


⩥ What are assets?
Answer: Resources owned by a business


⩥ What are liabilities?
Answer: Debts owed to creditors


⩥ What is equity?
Answer: Owner's claim to assets