ACCOUNTING 110 FINAL EXAM
2025 QUESTIONS AND ANSWERS
1. financial
2. managerial - ANSWER✔️✔️-what are the two types of accounting?
Financial Accounting - ANSWER✔️✔️-external users; measures value; emphasis on past
managerial accounting - ANSWER✔️✔️-internal users; adds value; emphasis on future
managerial accounting does - ANSWER✔️✔️-what accounting type has an emphasis on future?
accounting - ANSWER✔️✔️-info system that reports on the economic activities and financial
condition of a business
1. financing
2. investing
3. operating - ANSWER✔️✔️-what are the 3 types of business activities?
financing - ANSWER✔️✔️-where can the company get money?; creditors, investors, owners
investing - ANSWER✔️✔️-what is needed to run the business?; assets
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,operating - ANSWER✔️✔️-how does a company make money?; revenue
expenses, cost of goods sold, salaries and wage expenses, utilities expense, advertising expense -
ANSWER✔️✔️-how do companies spend money?
expenses - ANSWER✔️✔️-cost of assets consumed
1. sole proprietorship
2. partnership
3. corporation - ANSWER✔️✔️-what are the 3 forms of business?
sole proprietorship - ANSWER✔️✔️-- 1 owner
- easy to establish
- personally liable
partnership - ANSWER✔️✔️-- 2 or more owners
- partners share the risk and rewards
- personally liable
corperation - ANSWER✔️✔️-- separate legal entity (stockholders not personally liable)
- double taxation
- continuity of existence
- easy transfer of ownership-selling stock
- ability to raise capital
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
, 1. assets
2. liabilities
3. equity
4. revenues
5. expenses - ANSWER✔️✔️-what are the 5 account categories?
assets - ANSWER✔️✔️-"things of value"; "OWNED"; what makes the company money; turn into
cash
cash - ANSWER✔️✔️-checking account; savings account; money market
accounts receivable (AR) - ANSWER✔️✔️-this contains the amount of money that is owed to the
business by its customers
cash; accounts receivable; supplies; prepaids; inventory; non current assets - ANSWER✔️✔️-what
are examples of assets?
prepaids - ANSWER✔️✔️-cost of a prepayment; prepaid insurance; prepaid rent
inventory - ANSWER✔️✔️-raw materials; work in progress; finished goods
noncurrent assets - ANSWER✔️✔️-plant; property; equipment
liabilities - ANSWER✔️✔️-debt or obligations owed by a buisness
accounts payable (AP); unearned revenue; notes payable - ANSWER✔️✔️-what are examples of
liabilities?
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
2025 QUESTIONS AND ANSWERS
1. financial
2. managerial - ANSWER✔️✔️-what are the two types of accounting?
Financial Accounting - ANSWER✔️✔️-external users; measures value; emphasis on past
managerial accounting - ANSWER✔️✔️-internal users; adds value; emphasis on future
managerial accounting does - ANSWER✔️✔️-what accounting type has an emphasis on future?
accounting - ANSWER✔️✔️-info system that reports on the economic activities and financial
condition of a business
1. financing
2. investing
3. operating - ANSWER✔️✔️-what are the 3 types of business activities?
financing - ANSWER✔️✔️-where can the company get money?; creditors, investors, owners
investing - ANSWER✔️✔️-what is needed to run the business?; assets
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,operating - ANSWER✔️✔️-how does a company make money?; revenue
expenses, cost of goods sold, salaries and wage expenses, utilities expense, advertising expense -
ANSWER✔️✔️-how do companies spend money?
expenses - ANSWER✔️✔️-cost of assets consumed
1. sole proprietorship
2. partnership
3. corporation - ANSWER✔️✔️-what are the 3 forms of business?
sole proprietorship - ANSWER✔️✔️-- 1 owner
- easy to establish
- personally liable
partnership - ANSWER✔️✔️-- 2 or more owners
- partners share the risk and rewards
- personally liable
corperation - ANSWER✔️✔️-- separate legal entity (stockholders not personally liable)
- double taxation
- continuity of existence
- easy transfer of ownership-selling stock
- ability to raise capital
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
, 1. assets
2. liabilities
3. equity
4. revenues
5. expenses - ANSWER✔️✔️-what are the 5 account categories?
assets - ANSWER✔️✔️-"things of value"; "OWNED"; what makes the company money; turn into
cash
cash - ANSWER✔️✔️-checking account; savings account; money market
accounts receivable (AR) - ANSWER✔️✔️-this contains the amount of money that is owed to the
business by its customers
cash; accounts receivable; supplies; prepaids; inventory; non current assets - ANSWER✔️✔️-what
are examples of assets?
prepaids - ANSWER✔️✔️-cost of a prepayment; prepaid insurance; prepaid rent
inventory - ANSWER✔️✔️-raw materials; work in progress; finished goods
noncurrent assets - ANSWER✔️✔️-plant; property; equipment
liabilities - ANSWER✔️✔️-debt or obligations owed by a buisness
accounts payable (AP); unearned revenue; notes payable - ANSWER✔️✔️-what are examples of
liabilities?
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
