ACC 100 Exam 1 (30 Questions) – Accounting Principles, GAAP, Financial Statements – Toronto Metropolitan University

This document provides 30 detailed exam questions and answers for ACC 100: Introductory Financial Accounting, tailored to the 2025/2026 academic year at Toronto Metropolitan University. It offers a concise yet comprehensive breakdown of core accounting concepts, making it an ideal tool for students preparing for their first exam in financial accounting. Covered topics include the accounting process (analyzing, recording, summarizing, reporting), the users of accounting information, types of business activities (service, merchandising, manufacturing), forms of business ownership, the accounting equation (Assets = Liabilities + Owner’s Equity), and key financial statements such as the income statement and balance sheet. It also explores foundational principles like the GAAP framework and business entity concept. Each question is paired with a correct and clear answer to facilitate active studying and self-testing. This exam resource is especially useful for: Students in a Bachelor of Commerce (BCom) or Business Administration program First-year Accounting and Finance students Anyone enrolled in introductory accounting or financial literacy courses Learners preparing for in-class exams, online assessments, or review sessions in ACC 100 or equivalent courses The content is structured to enhance understanding and memorization, helping students perform confidently and accurately in exam scenarios. Keywords: ACC 100, financial accounting, accounting principles, GAAP, accounting process, financial statements, balance sheet, income statement, owner’s equity, accounting exam, business ownership, accounting equation, revenue accounts, expense accounts, business entity concept, Toronto Metropolitan University, exam prep, study guide, accounting basics, accounting midterm