Accounting Online Program Cheat Sheet 2026

The 30 highest-yield Accounting Online Program facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. The current asset MINUS the current liabilities is. → Working Capital
2. What does 'double-entry bookkeeping' mean? → Every transaction affects at least two accounts with equal debits and credits
3. A declining current ratio over multiple periods may indicate: → Increasing liquidity risk or rising short-term obligations
4. Which financial statement reports a company's assets, liabilities, and owner's equity at a specific point in time? → Balance sheet
5. The IRS Section 179 deduction allows businesses to: → Immediately expense the full cost of qualifying assets in the year of purchase
6. Which accounting concept states that insignificant items do not need to be disclosed separately if they would not influence a user's decision? → Materiality
7. A qualified audit opinion is issued when: → There is a scope limitation or a material but not pervasive misstatement
8. The IRS statute of limitations for assessing additional taxes on a standard return is generally: → 3 years
9. A company with a high asset turnover ratio but a low net profit margin most likely competes in which type of industry? → Grocery retail
10. Which of the following is NOT classified as a fiduciary fund type under GASB standards? → Capital Projects Fund
11. Which of the following is a real (permanent) account? → Accounts Receivable
12. Net sales are $900,000 and average total assets are $600,000. What is the asset turnover ratio? → 1.50
13. Which type of business organization offers limited liability to all its owners? → Corporation
14. Which financial statement summarizes the income and outgoings for a given time frame, such as a month or year? → Income Statement
15. Which of the following would be classified as an intangible asset? → Patent
16. What does ACFR stand for in the context of government financial reporting? → Annual Comprehensive Financial Report
17. Which principle or rule prevents the owner of a business from listing personal assets on the balance sheet of the business? → Economic Entity
18. What is an encumbrance in governmental fund accounting? → A commitment of appropriated funds for a future expenditure such as a purchase order
19. A company has current assets of $500,000, inventory of $150,000, and current liabilities of $200,000. What is the quick ratio? → 1.75
20. A company's total debt is $400,000 and total assets are $1,000,000. What is the debt ratio? → 0.40
21. Depreciation for tax purposes under the MACRS system refers to: → Modified Accelerated Cost Recovery System
22. The economic entity assumption states that: → A business's finances must be kept separate from its owner's personal finances
23. True or false: Free cash flow is the difference between the cash used for financing activities and the cash provided by operating activities. → False
24. Under the going concern assumption, assets are typically recorded at: → Historical cost
25. Under accrual accounting, when is revenue recognized? → When earned, regardless of when cash is received
26. The equity multiplier in DuPont analysis is calculated as: → Total Assets / Total Equity
27. Which of the following is an example of a contra asset account? → Accumulated Depreciation
28. Which of the following is an example of a preventive internal control? → Password requirements on accounting software
29. Enterprise Resource Planning (ERP) systems in accounting are characterized by: → Integrated modules that share a common database across the entire organization
30. Kaizen costing focuses on: → Continuous incremental cost reductions during the production phase