Accounting 200 Exam 1 / Verified Questions &
Correct Answers / Newest 2025/2026
•
1. Account payableANSWERS a liability backed by the general reputation and credit
standing at the debtor.
AccountingANSWERS the information system that measures business activities, processes
2.
that information into reports
And financial statements, and communicates the results to decision makers.
3. Accounting equationANSWERS assets=liabilities+owners equity
4. AssetANSWERS an economic resource that is expected to be of benefit in the future.
5.Balance sheetANSWERS list of an entity's assets, liabilities, and owner's equity as of a
specific date. Also called the
Statement of financial position.
6.Board of directorsANSWERS group elected by the stockholders to set policy for a
corporation and to appoint its oflcers.
7. CapitalANSWERS another name for the owner's equity of a business
8. CashANSWERS money and any medium of exchange that a bank accepts at face value.
9. Common stockANSWERS the most basic form of capital stock.
10.Continuity (going concern) assumptionANSWERS holds that the entity will
remain in operation for the
Foreseeable future.
11. CorporationANSWERS a business owned by stockholders. It is a legal entity, an "artificial
person" in the eyes of the law.
12. Current assetANSWERS an asset that is expected to be converted to cash, sold, or consume
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, during the next 12 months
Or within the business's normal operating cycle if longer than a year.
Current liabilityANSWERS a debt due to be paid within one year or within the entity's
13.
operating cycle if the cycle is longer than a year.
14. DeficitANSWERS negative balance in retained earnings caused by net losses over a period
of years.
15. DividendsANSWERS distributions (usually cash) by a corporation to its stockholders.
EntityANSWERS an organization or a section of an organization that, for accounting
16.
purposes, stands apart from other
Organizations and individuals as a separate economic unit.
17.ExpensesANSWERS decrease in retained earnings that results from operations; the cost of
doing business;opposite of revenues.
18.Fair valueANSWERS the amount that a business could sell an asses for, or the amount that
a business could pay to settle a liability.
19. Financial accountingANSWERS the branch of accounting that provides information t
people outside the firm.
Financial statementsANSWERS business documents that report financial information
20.
about a business entity to
Decision makers.
21.Financial activitiesANSWERS activities that obtain from investors and creditors the cash
needed to launch and sustain the business; a section of the statement of cash flows.
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Correct Answers / Newest 2025/2026
•
1. Account payableANSWERS a liability backed by the general reputation and credit
standing at the debtor.
AccountingANSWERS the information system that measures business activities, processes
2.
that information into reports
And financial statements, and communicates the results to decision makers.
3. Accounting equationANSWERS assets=liabilities+owners equity
4. AssetANSWERS an economic resource that is expected to be of benefit in the future.
5.Balance sheetANSWERS list of an entity's assets, liabilities, and owner's equity as of a
specific date. Also called the
Statement of financial position.
6.Board of directorsANSWERS group elected by the stockholders to set policy for a
corporation and to appoint its oflcers.
7. CapitalANSWERS another name for the owner's equity of a business
8. CashANSWERS money and any medium of exchange that a bank accepts at face value.
9. Common stockANSWERS the most basic form of capital stock.
10.Continuity (going concern) assumptionANSWERS holds that the entity will
remain in operation for the
Foreseeable future.
11. CorporationANSWERS a business owned by stockholders. It is a legal entity, an "artificial
person" in the eyes of the law.
12. Current assetANSWERS an asset that is expected to be converted to cash, sold, or consume
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, during the next 12 months
Or within the business's normal operating cycle if longer than a year.
Current liabilityANSWERS a debt due to be paid within one year or within the entity's
13.
operating cycle if the cycle is longer than a year.
14. DeficitANSWERS negative balance in retained earnings caused by net losses over a period
of years.
15. DividendsANSWERS distributions (usually cash) by a corporation to its stockholders.
EntityANSWERS an organization or a section of an organization that, for accounting
16.
purposes, stands apart from other
Organizations and individuals as a separate economic unit.
17.ExpensesANSWERS decrease in retained earnings that results from operations; the cost of
doing business;opposite of revenues.
18.Fair valueANSWERS the amount that a business could sell an asses for, or the amount that
a business could pay to settle a liability.
19. Financial accountingANSWERS the branch of accounting that provides information t
people outside the firm.
Financial statementsANSWERS business documents that report financial information
20.
about a business entity to
Decision makers.
21.Financial activitiesANSWERS activities that obtain from investors and creditors the cash
needed to launch and sustain the business; a section of the statement of cash flows.
2/9
