CPAStrength

Question 1

Basic Accounting Equation

Answer 1

Debits
Credits

Assets + (Cash, AR, Inventory, PPE, B/S)
Draw + (Owner’s Equity, Distribution, Other Side, Can be B/S)
Expenses + (Rent, Utilities, Telephone, Internet, Phone, Investment I/S)

Liabilities + (A/P, B/S)
Equity + (Owner’s Equity, Retained Earnings, B/S)
Revenue + (Sales, Service, I/S)

Debits ALWAYS = Credits
A=L+E (B/S)
(Neither Good or Bad/Just Is)
(Basics 1, 2)

Question 2

What is the journal entry to borrow $10,000 from a bank?

Answer 2

(dr) Cash 10000 + A
(cr) Liability 10000 + L
(Basics 3)

Question 3

What is the journal entry to buy a truck for 5000?

Answer 3

(dr) Truck 5000 + A
(cr) Cash 5000 - A
(Basics 3)

Question 4

Control Activities

Answer 4

Pre Numbered Documents
Authorization
Independent Checks
Documentation
Timely Processing
Info Processing
Physical Controls
Segregation of Duties
(Mnemonics)

Question 5

FAR and AUD times

Answer 5

320
240
200
(When you get to the exam)