Accounting 101 Midterm Exam Review
Questions and Answers
The Accounting Equation - ANS-Assets= Liabilities + Stockholders Equity
Assets - ANS-Economic resources that are expected to benefit the company's future
operations.
Assets include - ANS-Monetary items (cash and money owed to the company by
customers), nonmonetary items, physical items (inventories, land, buildings,
equipment), nonphysical items (rights granted by patents, trademarks, and copyrights).
Liabilities - ANS-business' present obligations to pay cash, transfer assets, or provide
services to other entities in the future.
Liabilities include - ANS-amounts owed to suppliers for good and services (accounts
payable), borrowed money (loans), expenses taxes owed to the government, services
to be performed.
Stockholders Equity - ANS-represents the claims by the owners of a corporation to the
assets of the business
2 parts of Stockholders Equity - ANS-Contributed Capital and Retained Earnings
Dividends - ANS-distributions of resources, generally in the form of cash, to
stockholders.
Statement of Retained Earnings - ANS-Dividends are listed on which Fin. Statement?
4 financial statements - ANS-Income statement, Statement of Retained Earnings,
Balance Sheet, Statement of Cash Flows
Income Statment - ANS-summarizes the revenue and expenses by a business incurred
over an accounting period of months or years. It shows if the business is profitable
Statement of Retained Earnings statement - ANS-Shows the changes in retained
earnings over an accounting period typically a month.
Balance Sheet - ANS-shows the financial position of a business on a certain, usually a
day, could be month or year too.
Questions and Answers
The Accounting Equation - ANS-Assets= Liabilities + Stockholders Equity
Assets - ANS-Economic resources that are expected to benefit the company's future
operations.
Assets include - ANS-Monetary items (cash and money owed to the company by
customers), nonmonetary items, physical items (inventories, land, buildings,
equipment), nonphysical items (rights granted by patents, trademarks, and copyrights).
Liabilities - ANS-business' present obligations to pay cash, transfer assets, or provide
services to other entities in the future.
Liabilities include - ANS-amounts owed to suppliers for good and services (accounts
payable), borrowed money (loans), expenses taxes owed to the government, services
to be performed.
Stockholders Equity - ANS-represents the claims by the owners of a corporation to the
assets of the business
2 parts of Stockholders Equity - ANS-Contributed Capital and Retained Earnings
Dividends - ANS-distributions of resources, generally in the form of cash, to
stockholders.
Statement of Retained Earnings - ANS-Dividends are listed on which Fin. Statement?
4 financial statements - ANS-Income statement, Statement of Retained Earnings,
Balance Sheet, Statement of Cash Flows
Income Statment - ANS-summarizes the revenue and expenses by a business incurred
over an accounting period of months or years. It shows if the business is profitable
Statement of Retained Earnings statement - ANS-Shows the changes in retained
earnings over an accounting period typically a month.
Balance Sheet - ANS-shows the financial position of a business on a certain, usually a
day, could be month or year too.
