AREC 212 Exam 3 QUESTIONS WITH ANSWERS

AREC 212 Exam 3 QUESTIONS WITH |\ |\ |\ |\ |\ |\




ANSWERS


The Accounting Equation - CORRECT ANSWERS ✔✔Assets
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= Liabilities + Owner's Equity
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Balance Sheet - CORRECT ANSWERS ✔✔A snapshot of a
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firm's financial standings for one day
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Current Assets - CORRECT ANSWERS ✔✔Expect to be
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turned into cash within the accounting period-liquid
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assets.
Include: cash, inventories, accounts recievable
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Accounts Recievable - CORRECT ANSWERS ✔✔Money the
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firm is owed, usually because of purchases made on
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credit


Fixed Assets - CORRECT ANSWERS ✔✔Less liquid assets
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Include: buildings, equipment, etc.
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Liabilities - CORRECT ANSWERS ✔✔Debt- something that
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the firm OWES
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, Current Liabilities - CORRECT ANSWERS ✔✔Paid off during
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the accounting period
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Long-term Liabilities - CORRECT ANSWERS ✔✔Paid off |\ |\ |\ |\ |\ |\ |\



beyond the accounting period
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Owner's Equity - CORRECT ANSWERS ✔✔-net worth
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Want this to be a positive number
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* Asset - Liability = Owner's Equity
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Stockholder's Equity - CORRECT ANSWERS ✔✔Amount |\ |\ |\ |\ |\ |\



owed to the owners |\ |\ |\




Solvent - CORRECT ANSWERS ✔✔ |\ |\ |\ |\




Insolvent - CORRECT ANSWERS ✔✔ |\ |\ |\ |\




Profit and Loss Statement - CORRECT ANSWERS
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✔✔Income statement (for accounting period) |\ |\ |\ |\




Revenue - CORRECT ANSWERS ✔✔Sales |\ |\ |\ |\




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