CHAPTER 1 (HORNGREN’S ACCOUNTING
11TH EDITION) EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+ 2025 – 2026
Statement of Cash Flows - ANSWERS-Reports on a business's
cash receipts and cash payments for a specific period.
Statement of Retained Earnings - ANSWERS-Reports how
the company's retained earnings balance changed from the
beginning to the end of the period.
Average total assets - ANSWERS-Measures how efficiently a
business uses its average total assets to generate sales. Net
sales / Average total assets.
Return on Assets (ROA) - ANSWERS-Measures how
profitably a company uses its assets. Net income / Average
total assets.
, Creditor - ANSWERS-Any person or business to whom a
business owes money.
Corporation - ANSWERS-A business organized under state
law that is a separate legal entity.
Economic Entity Assumption - ANSWERS-An organization
that stands apart as a separate economic unit.
Financial Accounting Standards Board (FASB) - ANSWERS-
The private organization that oversees the creation and
governance of accounting standards in the United States.
Generally Accepted Accounting Principles (GAAP) -
ANSWERS-Accounting guidelines, currently formulated by
the Financial Accounting Standards Board (FASB); the main
U.S. accounting rule book.
Limited-Liability Company (LLC) - ANSWERS-A company in
which each member is only liable for his or her own actions.
Partnership - ANSWERS-A business with two or more
owners that is not organized as a corporation.
11TH EDITION) EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+ 2025 – 2026
Statement of Cash Flows - ANSWERS-Reports on a business's
cash receipts and cash payments for a specific period.
Statement of Retained Earnings - ANSWERS-Reports how
the company's retained earnings balance changed from the
beginning to the end of the period.
Average total assets - ANSWERS-Measures how efficiently a
business uses its average total assets to generate sales. Net
sales / Average total assets.
Return on Assets (ROA) - ANSWERS-Measures how
profitably a company uses its assets. Net income / Average
total assets.
, Creditor - ANSWERS-Any person or business to whom a
business owes money.
Corporation - ANSWERS-A business organized under state
law that is a separate legal entity.
Economic Entity Assumption - ANSWERS-An organization
that stands apart as a separate economic unit.
Financial Accounting Standards Board (FASB) - ANSWERS-
The private organization that oversees the creation and
governance of accounting standards in the United States.
Generally Accepted Accounting Principles (GAAP) -
ANSWERS-Accounting guidelines, currently formulated by
the Financial Accounting Standards Board (FASB); the main
U.S. accounting rule book.
Limited-Liability Company (LLC) - ANSWERS-A company in
which each member is only liable for his or her own actions.
Partnership - ANSWERS-A business with two or more
owners that is not organized as a corporation.
