ACCT 2101 Exam 1 questions with answers,

ACCT 2101 Exam 1 questions with
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answers

liabilities - CORRECT ANSWERS ✔✔probable debts or
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obligations of the business enterprise that result from
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past transactions, which will be paid with assets or
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services


stockholders' equity - CORRECT ANSWERS ✔✔financing |\ |\ |\ |\ |\ |\



provided by the owners of a business enterprise and from
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business operations |\




operating cycle - CORRECT ANSWERS ✔✔time it takes for
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a company to pay suppliers, sell goods and services to
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customers, and collect case from customers |\ |\ |\ |\ |\




revenues - CORRECT ANSWERS ✔✔increases in assets or
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settlements of liabilities from ongoing operations |\ |\ |\ |\ |\




expenses - CORRECT ANSWERS ✔✔decreases in assets or
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increases in liabilities incurred to generate revenues
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during an accounting period
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, cash basis accounting - CORRECT ANSWERS ✔✔an overall
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method of accounting that records revenue when cash is
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received and expenses when cash is paid |\ |\ |\ |\ |\ |\




accrual basis accounting - CORRECT ANSWERS ✔✔an
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overall method of accounting that records revenue when
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earned and expenses when incurred
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revenue principle - CORRECT ANSWERS ✔✔principle that
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revenues are recognized when (1) goods or services are
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delivered, (2) there is persuasive evidence of an |\ |\ |\ |\ |\ |\ |\ |\



arrangement for customer payment, (3) the price is fixed |\ |\ |\ |\ |\ |\ |\ |\ |\



or determinable, and (4) collection is reasonably assured
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balance sheet - CORRECT ANSWERS ✔✔statement that
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reports the amount of assets, liabilities, and stockholders'
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equity of a business enterprise at a specific point in time
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income statement - CORRECT ANSWERS ✔✔statement
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that reports the revenues less the expenses of a business
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enterprise during an accounting period |\ |\ |\ |\




statement of retained earnings - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\



✔✔statement that reports the way that net income and |\ |\ |\ |\ |\ |\ |\ |\ |\



the distribution of dividends affected the financial position
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of a business enterprise during an accounting period
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