D774 Exam Complete Questions with
Correct Answers Updated 2025/2026
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1. Balance Sheet - ANSWER ✓ Is the financial postion of a company at a
PARTICULAR DATE.
2. What is in a balance sheet - ANSWER ✓ Assets, liabilities, and owners
equity
3. Ex if an owner borrowed money to buy a truck will it be an asset or liability?
- ANSWER ✓ The truck would be an asset, the money borrowed would be a
liability
4. Assets: Accounts Receivable - ANSWER ✓ Amounts due from customers
for goods or services sold to them on credit
5. Assets are listed on a balance sheet in order of their - ANSWER ✓ liquidity
how fast and easily they can be converted into cash
6. Investors and creditors use the balance sheet to - ANSWER ✓ evaluate a
company's liquidity position
7. Balance sheet is a useful source of information regarding: - ANSWER ✓
The financial position of a business
8. classified balance sheet is - ANSWER ✓ Distingushes between current and
long term asset
9. comparative balance sheet - ANSWER ✓ includes information from both
current year and on or more prior year
, 10.Liability: Accounts payable - ANSWER ✓ amount owed as a result of the
purchase of good and services on credit
11.Liability: Taxes payable - ANSWER ✓ Amounts owed to federal, state ,and
local governments
12.Liability: mortgage payable - ANSWER ✓ Amounts owed relating to the
purchase of property
13.Unearned Revenue - ANSWER ✓ Amounts owed to customer that paid in
advance
14.owner equity is AKA - ANSWER ✓ net assets
15.Retained Earnings - ANSWER ✓ Earnings Earnings that are retained in the
business and have not been used to pay dividends to shareholders
16.Owners Equity decreases when - ANSWER ✓ 1. Owners take back part of
their investment or some of the earnings of the company
17.2. If operations generate a net loss instead of a profit
18.3. Owner lose all the assets invested by owner
19.Owners Equity equation - ANSWER ✓ retained earning (not cash,
reinvested into the company) + Capital stock
20.Income Statement: Net Income Equation - ANSWER ✓ Revenues (pretax
income)- Expenses(income tax expenses)
21.Gross Margin Equation - ANSWER ✓ Revenue(sales)-Cost of good sold
22.Assets - ANSWER ✓ Cash, Account receivable, inventory, prepaid
expenses, land and building, and equipment.
23.Liabilities - ANSWER ✓ Accounts payable, taxes payable, unearned
revenue, and long term debt
Correct Answers Updated 2025/2026
Already Graded!!!100% Guaranteed
Pass!!
1. Balance Sheet - ANSWER ✓ Is the financial postion of a company at a
PARTICULAR DATE.
2. What is in a balance sheet - ANSWER ✓ Assets, liabilities, and owners
equity
3. Ex if an owner borrowed money to buy a truck will it be an asset or liability?
- ANSWER ✓ The truck would be an asset, the money borrowed would be a
liability
4. Assets: Accounts Receivable - ANSWER ✓ Amounts due from customers
for goods or services sold to them on credit
5. Assets are listed on a balance sheet in order of their - ANSWER ✓ liquidity
how fast and easily they can be converted into cash
6. Investors and creditors use the balance sheet to - ANSWER ✓ evaluate a
company's liquidity position
7. Balance sheet is a useful source of information regarding: - ANSWER ✓
The financial position of a business
8. classified balance sheet is - ANSWER ✓ Distingushes between current and
long term asset
9. comparative balance sheet - ANSWER ✓ includes information from both
current year and on or more prior year
, 10.Liability: Accounts payable - ANSWER ✓ amount owed as a result of the
purchase of good and services on credit
11.Liability: Taxes payable - ANSWER ✓ Amounts owed to federal, state ,and
local governments
12.Liability: mortgage payable - ANSWER ✓ Amounts owed relating to the
purchase of property
13.Unearned Revenue - ANSWER ✓ Amounts owed to customer that paid in
advance
14.owner equity is AKA - ANSWER ✓ net assets
15.Retained Earnings - ANSWER ✓ Earnings Earnings that are retained in the
business and have not been used to pay dividends to shareholders
16.Owners Equity decreases when - ANSWER ✓ 1. Owners take back part of
their investment or some of the earnings of the company
17.2. If operations generate a net loss instead of a profit
18.3. Owner lose all the assets invested by owner
19.Owners Equity equation - ANSWER ✓ retained earning (not cash,
reinvested into the company) + Capital stock
20.Income Statement: Net Income Equation - ANSWER ✓ Revenues (pretax
income)- Expenses(income tax expenses)
21.Gross Margin Equation - ANSWER ✓ Revenue(sales)-Cost of good sold
22.Assets - ANSWER ✓ Cash, Account receivable, inventory, prepaid
expenses, land and building, and equipment.
23.Liabilities - ANSWER ✓ Accounts payable, taxes payable, unearned
revenue, and long term debt
