Accounting 201 Deboskey
Exam 1 2026 | Study
Guide, Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, what is the accounting cycle? full set of procedures used to accomplish this two-step
measurement/communication process
what is an external transaction? transactions that the firm conducts with a separate economic entity
what is an internal transaction? events that affect the financial position of the company but do not include an
exchange with a separate economic entity or individual
What are the six steps of measuring external transactions? 1. use SOURCE DOCUMENTS to identify accounts affected by external
transactions
2. Analyze the impact of the transaction on the ACCOUNTING EQUATION
3. assess whether the transaction results in a DEBIT or CREDIT to account
balances
4. record the transaction in a JOURNAL using debits or credits
5. post the transaction to the GENERAL LEDGER
6. prepare a TRIAL BALANCE
what is accounting? people making decisions about a company; activities are measured by accountants,
who then communicate this information
what are the three types of activities that accountants Operating Activities, Investing Activites, Financing activities
measure?
what are operating activities? primary operations of a corporation, dealing with revenues or expenses
what are investing activities? the purchase and sale of long term assets and other assets
what are financing activities? external sources of funding from owners or lenders
what is the accounting equation? assets = liabilities + stockholders' equity
what makes up stockholders' equity? common stock and retained earnings
Exam 1 2026 | Study
Guide, Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, what is the accounting cycle? full set of procedures used to accomplish this two-step
measurement/communication process
what is an external transaction? transactions that the firm conducts with a separate economic entity
what is an internal transaction? events that affect the financial position of the company but do not include an
exchange with a separate economic entity or individual
What are the six steps of measuring external transactions? 1. use SOURCE DOCUMENTS to identify accounts affected by external
transactions
2. Analyze the impact of the transaction on the ACCOUNTING EQUATION
3. assess whether the transaction results in a DEBIT or CREDIT to account
balances
4. record the transaction in a JOURNAL using debits or credits
5. post the transaction to the GENERAL LEDGER
6. prepare a TRIAL BALANCE
what is accounting? people making decisions about a company; activities are measured by accountants,
who then communicate this information
what are the three types of activities that accountants Operating Activities, Investing Activites, Financing activities
measure?
what are operating activities? primary operations of a corporation, dealing with revenues or expenses
what are investing activities? the purchase and sale of long term assets and other assets
what are financing activities? external sources of funding from owners or lenders
what is the accounting equation? assets = liabilities + stockholders' equity
what makes up stockholders' equity? common stock and retained earnings
