ACCT 2000 EXAM 1 REVIEW EXAM 09/17/2026
Acct 2000 exam 1 review exam with correct actual
questions and correctly Answered
Standard classification of assets
1. Current assets
2. Long term investments
3. Property, plants, and equipment
4. Intangible assets
Standard classification of liabilities and stockholders' equity
1. Current liabilities
2. Long term liabilities
3. Stockholders' equity
Current assets
Assets that a company expects to convert to cash or use up within one year or the operating cycle
Operating cycle
The average time it takes from purchase of inventory, to sale of goods, and then to collection of cash
from customers
9/17/2026
Common types of assets
1
, ACCT 2000 EXAM 1 REVIEW EXAM 09/17/2026
- cash
- investments
- receivables
- inventories
- prepaid expenses
How are current assets listed?
By order of expected conversion to cash (liquidity)
Long term investments
- investment in stocks and bonds
- long term assets
- long term notes receivable
What is meant by investments in stocks and bonds?
Investing in stocks and bonds of other corporations that are held for more than one year
What are long term assets?
Land or buildings that a company is not currently using in its operating activites
What is included in property, plant, and equipment?
9/17/2026
Land, buildings, equipment, delivery vehicles, and furniture
2
, ACCT 2000 EXAM 1 REVIEW EXAM 09/17/2026
What is depreciation?
Allocating the cost of assets over a number of years
What is accumulated depreciation ?
Total amount of depreciation expensed so far in the asset's life
What is an intangible asset?
Assets that do not have physical substance
(ex. Goodwill, patents, copyrights, and trademarks)
What is considered a current liability ?
Things the company has to pay within the next year or operating cycle (whichever is longer)
(ex. Accounts payable, salaries and wages payable, notes payable, unearned revenue, interest
payable, etc.)
What is a long term liability ?
Things the company is expecting to pay after one year
(ex. Bonds payable, mortgages payable, long term notes payable, lease liabilities, and pension
liabilities)
9/17/2026
What is considered stockholder's equity?
Common stock and retained earnings
3
Acct 2000 exam 1 review exam with correct actual
questions and correctly Answered
Standard classification of assets
1. Current assets
2. Long term investments
3. Property, plants, and equipment
4. Intangible assets
Standard classification of liabilities and stockholders' equity
1. Current liabilities
2. Long term liabilities
3. Stockholders' equity
Current assets
Assets that a company expects to convert to cash or use up within one year or the operating cycle
Operating cycle
The average time it takes from purchase of inventory, to sale of goods, and then to collection of cash
from customers
9/17/2026
Common types of assets
1
, ACCT 2000 EXAM 1 REVIEW EXAM 09/17/2026
- cash
- investments
- receivables
- inventories
- prepaid expenses
How are current assets listed?
By order of expected conversion to cash (liquidity)
Long term investments
- investment in stocks and bonds
- long term assets
- long term notes receivable
What is meant by investments in stocks and bonds?
Investing in stocks and bonds of other corporations that are held for more than one year
What are long term assets?
Land or buildings that a company is not currently using in its operating activites
What is included in property, plant, and equipment?
9/17/2026
Land, buildings, equipment, delivery vehicles, and furniture
2
, ACCT 2000 EXAM 1 REVIEW EXAM 09/17/2026
What is depreciation?
Allocating the cost of assets over a number of years
What is accumulated depreciation ?
Total amount of depreciation expensed so far in the asset's life
What is an intangible asset?
Assets that do not have physical substance
(ex. Goodwill, patents, copyrights, and trademarks)
What is considered a current liability ?
Things the company has to pay within the next year or operating cycle (whichever is longer)
(ex. Accounts payable, salaries and wages payable, notes payable, unearned revenue, interest
payable, etc.)
What is a long term liability ?
Things the company is expecting to pay after one year
(ex. Bonds payable, mortgages payable, long term notes payable, lease liabilities, and pension
liabilities)
9/17/2026
What is considered stockholder's equity?
Common stock and retained earnings
3
