ACCT 2010 Exam 1 Questions with
Verified Solutions
accounting 1 - ANS-a set of concepts and techniques that are used to measure and
report financial information about an economic unit
managerial accounting 1 - ANS-an area of accounting concerned with reporting results
to managers and others who are internal to an organization
net income 1 - ANS-the excess of revenues over expenses for a designated period of
time
net loss 1 - ANS-the excess of expenses over revenues for a designated period of time
owner investments 1 - ANS-resources provided to an organization by a person in
exchange for a position of ownership in the organization
owners' equity 1 - ANS-the residual of assets minus liabilities, representing the
collective interest or position of the entity's owners
partnership 1 - ANS-a non-corporation representing an association of two or more
persons organized to carry out a business plan for a profit motive
public accounting 1 - ANS-accounting activities provided by a person to the general
public, typically relating to audit, tax, and similar services
retained earnings 1 - ANS-the excess of a corporation's income over its dividends
revenue 1 - ANS-inflows and other benefits received in exchange for the providing of
goods and services
sole proprietorship 1 - ANS-a non-corporation business owned by a sole individual
statement of retained earnings 1 - ANS-a financial statement that discloses changes in
retained earnings during a designated period of time; those changes usually attribute to
income and dividends
account 2 - ANS-a record that is kept for each asset, liability, equity, revenue, expense,
and dividend component of an entity
, chart of accounts 2 - ANS-a listing of the accounts of an entity, along with any
identification coding
control account 2 - ANS-the total of all subcomponent account records for an account
debit 2 - ANS-the nature of an action to an account to indicate an increase (assets,
expenses, and dividends) or decrease (liabilities, equity, and revenues)
credit 2 - ANS-The nature of an action to an account to indicate an increase (liabilities,
equity, and revenues) or a decrease (assets, expenses, and dividends)
general ledger 2 - ANS-a record of the accounts comprising financial statements, and
their respective balances
journal 2 - ANS-a chronological listing of the transactions and events of an organization,
in debit/credit format
journalizing 2 - ANS-the process of recording transactions and events into the journal
posting 2 - ANS-the process of transferring journal entry effects into the respective
general ledger accounts
source document 2 - ANS-a document evidencing a transaction or event and potentially
providing for the initiation of a journal entry
subsidiary account 2 - ANS-a subcomponent account record providing individual
balance details
t-account 2 - ANS-an abstract representation of an account, with the left side of the "t"
representing debits and the right side credits
trial balance 2 - ANS-a listing of account balances from the ledger, used to test the
equality of debits and credits
accrual 3 - ANS-expenses and revenues that gradually accumulate throughout an
accounting period
accrual basis 3 - ANS-the accounting process whereby revenues are measured and
recorded as earned, and expenses are recorded as incurred
accrued expenses 3 - ANS-unpaid expenses that have already been incurred
accrued revenues 3 - ANS-revenues that have been earned and recorded, but are not
as yet collected
Verified Solutions
accounting 1 - ANS-a set of concepts and techniques that are used to measure and
report financial information about an economic unit
managerial accounting 1 - ANS-an area of accounting concerned with reporting results
to managers and others who are internal to an organization
net income 1 - ANS-the excess of revenues over expenses for a designated period of
time
net loss 1 - ANS-the excess of expenses over revenues for a designated period of time
owner investments 1 - ANS-resources provided to an organization by a person in
exchange for a position of ownership in the organization
owners' equity 1 - ANS-the residual of assets minus liabilities, representing the
collective interest or position of the entity's owners
partnership 1 - ANS-a non-corporation representing an association of two or more
persons organized to carry out a business plan for a profit motive
public accounting 1 - ANS-accounting activities provided by a person to the general
public, typically relating to audit, tax, and similar services
retained earnings 1 - ANS-the excess of a corporation's income over its dividends
revenue 1 - ANS-inflows and other benefits received in exchange for the providing of
goods and services
sole proprietorship 1 - ANS-a non-corporation business owned by a sole individual
statement of retained earnings 1 - ANS-a financial statement that discloses changes in
retained earnings during a designated period of time; those changes usually attribute to
income and dividends
account 2 - ANS-a record that is kept for each asset, liability, equity, revenue, expense,
and dividend component of an entity
, chart of accounts 2 - ANS-a listing of the accounts of an entity, along with any
identification coding
control account 2 - ANS-the total of all subcomponent account records for an account
debit 2 - ANS-the nature of an action to an account to indicate an increase (assets,
expenses, and dividends) or decrease (liabilities, equity, and revenues)
credit 2 - ANS-The nature of an action to an account to indicate an increase (liabilities,
equity, and revenues) or a decrease (assets, expenses, and dividends)
general ledger 2 - ANS-a record of the accounts comprising financial statements, and
their respective balances
journal 2 - ANS-a chronological listing of the transactions and events of an organization,
in debit/credit format
journalizing 2 - ANS-the process of recording transactions and events into the journal
posting 2 - ANS-the process of transferring journal entry effects into the respective
general ledger accounts
source document 2 - ANS-a document evidencing a transaction or event and potentially
providing for the initiation of a journal entry
subsidiary account 2 - ANS-a subcomponent account record providing individual
balance details
t-account 2 - ANS-an abstract representation of an account, with the left side of the "t"
representing debits and the right side credits
trial balance 2 - ANS-a listing of account balances from the ledger, used to test the
equality of debits and credits
accrual 3 - ANS-expenses and revenues that gradually accumulate throughout an
accounting period
accrual basis 3 - ANS-the accounting process whereby revenues are measured and
recorded as earned, and expenses are recorded as incurred
accrued expenses 3 - ANS-unpaid expenses that have already been incurred
accrued revenues 3 - ANS-revenues that have been earned and recorded, but are not
as yet collected
