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Payroll Fundamentals 2 Questions
The Accounting Equation - -Correct Answer-Assets = Liabilities + Owners Equity
Components of Owner's Equity - -Correct Answer-Owner's Equity = Contributed Capital
+ Retained Earnings
Contributed Capital - -Correct Answer-Payments in cash or assets made by owners to
the company
Expanded Accounting Equation - -Correct Answer-Assets = Liabilities + Contributed
Capital + Retained Earnings
Accounts in a For-Profit Organization - -Correct Answer-- Asset accounts
- Liability accounts
- Revenue accounts
- Expense accounts
- Owners' Equity accounts
Definition of Asset Accounts - -Correct Answer-Contains the value of items owned by the
organization
Definition of Liability Accounts - -Correct Answer-Indicates the money owed by the
organization to its creditors
Examples of Asset Accounts - -Correct Answer-- Cash
- Accounts receivable
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- Prepaid expenses
- Inventory
Examples of Liability Accounts - -Correct Answer-- Accounts payable
- Salaries and wages payable
- Vacation pay payable
Purpose of Revenue Accounts - -Correct Answer-Used to record the income earned by
the organization
Expense Accounts - -Correct Answer-Costs incurred in earning revenue during a specific
period
Equity Accounts - -Correct Answer-Show owners' or shareholders' worth in the
organization
Owners' Equity Components - -Correct Answer-Contributed capital & retained earnings
General Ledger Accounts Elements - -Correct Answer-- Account name
- Opening balance
- Reference
- Debit and credit transactions
- Closing balance
Components of a Journal Entry - -Correct Answer-- Journal entry reference or number
- Transaction date
- Debit and credit amounts per account
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Payroll Fundamentals 2 Questions
The Accounting Equation - -Correct Answer-Assets = Liabilities + Owners Equity
Components of Owner's Equity - -Correct Answer-Owner's Equity = Contributed Capital
+ Retained Earnings
Contributed Capital - -Correct Answer-Payments in cash or assets made by owners to
the company
Expanded Accounting Equation - -Correct Answer-Assets = Liabilities + Contributed
Capital + Retained Earnings
Accounts in a For-Profit Organization - -Correct Answer-- Asset accounts
- Liability accounts
- Revenue accounts
- Expense accounts
- Owners' Equity accounts
Definition of Asset Accounts - -Correct Answer-Contains the value of items owned by the
organization
Definition of Liability Accounts - -Correct Answer-Indicates the money owed by the
organization to its creditors
Examples of Asset Accounts - -Correct Answer-- Cash
- Accounts receivable
1
, 2
- Prepaid expenses
- Inventory
Examples of Liability Accounts - -Correct Answer-- Accounts payable
- Salaries and wages payable
- Vacation pay payable
Purpose of Revenue Accounts - -Correct Answer-Used to record the income earned by
the organization
Expense Accounts - -Correct Answer-Costs incurred in earning revenue during a specific
period
Equity Accounts - -Correct Answer-Show owners' or shareholders' worth in the
organization
Owners' Equity Components - -Correct Answer-Contributed capital & retained earnings
General Ledger Accounts Elements - -Correct Answer-- Account name
- Opening balance
- Reference
- Debit and credit transactions
- Closing balance
Components of a Journal Entry - -Correct Answer-- Journal entry reference or number
- Transaction date
- Debit and credit amounts per account
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