ACCT 3311- entrance exam review questions with answers

CCT 3311- entrance exam review
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questions with answers |\ |\




Accounting - CORRECT ANSWERS ✔✔-Identify
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-Records
-communicates RELEVANT, RELIABLE, AND COMPARABLE |\ |\ |\ |\




GAAP - CORRECT ANSWERS ✔✔Generally Accepted
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Accounting Principles |\




Accounting Equation - CORRECT ANSWERS ✔✔Assets =
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Liabilities + Equity |\ |\




Types of Liabilities (PAYABLE) - CORRECT ANSWERS ✔✔-
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Accounts payable |\




- Dividends payable
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- Accrued expenses payable
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- Income tax payable
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- Unearned Franchise fees
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- Notes Payable (Long term)
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- Other long term liabilities
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,Types of Equity - CORRECT ANSWERS ✔✔- Common stock
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- contributed capital
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- Retained Earnings
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- Dividends
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Equity Equation - CORRECT ANSWERS ✔✔Common stock -
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Retained earnings
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Sarbanes-Oxley Act - CORRECT ANSWERS ✔✔insure that |\ |\ |\ |\ |\ |\ |\



information is TRANSPARENT, ACCOUNTABLE, AND TRUE |\ |\ |\ |\ |\




What happens when you PURCHASE on account? -
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CORRECT ANSWERS ✔✔DEBIT (+) assets |\ |\ |\ |\




CREDIT (+) liabilities |\ |\




What happens when you SELL on account? - CORRECT
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ANSWERS ✔✔DEBIT (+) Account Receivables |\ |\ |\ |\ |\




CREDIT (+) Sales |\ |\




What happens when you PROVIDE A SERVICE and they
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pay you Cash? - CORRECT ANSWERS ✔✔DEBIT (+) Assets
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for the cash you got
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CREDIT (+) Equity under Revenue |\ |\ |\ |\

, What happens when you PAY SALARIES with cash? -
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CORRECT ANSWERS ✔✔DEBIT (-) Equity under Expense to
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lower your expense
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CREDIT (-) Asset for the cash you paid them with
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Net Income / Income Statement equation - CORRECT
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ANSWERS ✔✔Revenues - Expenses = Net Income |\ |\ |\ |\ |\ |\




Retained Earning Equation - CORRECT ANSWERS ✔✔Net
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Income - Dividends = Retained Earnings
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Balance Sheet Equation - CORRECT ANSWERS ✔✔Assets
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= Liabilities + Equity
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Statement of Cash Flows - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\



✔✔*Operating
*Investing
*Financing


Return on Assets (ROA) - CORRECT ANSWERS ✔✔How
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much profit you are getting
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net income / ave. total assets = ROA
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