Exam Review 1

Question 1

What is a balance sheet?

Question 2

What is a statement of retained earnings?

Question 3

What is a statement of cash flows?

Question 4

What’s an income statement?

Answer 4

Financial statement that reports whether the business earned a profit and also lists the revenues + expenses

Question 5

What is the statement of financial positions?

Question 6

What are classified as assets?

Answer 6

Cash
Supplies
Equipment
Land
Accounts receivable

Question 7

What accounts are classified as assets?.

Answer 7

Accounts receivable

Question 8

What are the diff. Types of ACC. ?

Answer 8

Liability acc.

Question 9

List of liability acc?

Answer 9

Accounts payable

Question 10

What accounts have a normal balance in debit?

Question 11

What accounts have a normal balance in credit?

Question 12

What is normal balance?

Question 13

What is debit?

Question 14

What is credit?

Question 15

Do you log debit or credit first?.

Question 16

How do you log salaries earned but unpaid?

Question 17

What is the acc equation?

Answer 17

Assets: liability + equity

Question 18

What is an adjusted entry? What is it used for?

Question 19

What is important to note when calculating expenses for insurance

Answer 19

How long is the term
Are the date @ startled of the month?

Question 20

What is depreciation?

Question 21

How do you calculate depreciation?

Question 22

How do you record pre-paid expenses?

Question 23

An asset account is

Question 24

A liability account includes

Question 25

A stock holders equity account includes

Question 26

A revenue account includes

Question 27

An expense account includes

Question 28

What does a credit entry do?

Question 29

What is required for closing entries ?

Question 30

What is the diff. Between accrued and cash?

Question 31

What are the three functions of accounting?

Answer 31

Identifying
Recording
Communicating

Question 32

What are external users?

Answer 32

Do NOT directly run the organization and have limited access to its acc. information.

Question 33

What are internal users?

Answer 33

Directly manage the organization.
- Internal reports are specific to needs of managerial or executive employees

Question 34

What are the four areas of acc

Answer 34

Financial
Managerial
Taxation
Acc-related

Question 35

What are the three steps of ethical decision making?

Answer 35

1. Identify ethical concerns
2. Analyze options
3. Make ethical decisions

Question 36

What are the three factors of the fraud triangle?

Answer 36

Opportunity
Pressure
Rationalization

Question 37

What are the generally accepted accounting principles (GAAP)?

Answer 37

Info needs to have relevance and faithful representation

Question 38

What is the measurement principle/ cost principle

Answer 38

Acc info is based on ACTUAL cost

Question 39

When is revenue recognized? (recognized=record)

Answer 39

When goods or services are provided to the customers at the amount expected to be received

Question 40

What are the four acc. assimptions

Answer 40

Going-concern
Monetary unit
Time period
Business entity

Question 41

What are assets?

Answer 41

Resources a company owns or controls
They are expected to yield future benefits

Question 42

What is a receivable?

Answer 42

An asset that promises a future inflow of resources.
ex: when a company provides a service on credit

Question 43

What are liabilities?

Answer 43

Creditors’ claims on assets. These claims are obligations to provide assets,products, or services others.