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ACCT5101 Midterm Study Guide.
Chapter 1 - Answers✔Accounting Concepts
Asset - Answers✔Probable future economic benefits
Examples of Assets - Answers✔Cash, accounts receivable, supplies, inventory, land, patents
Liabilities - Answers✔Probable future sacrifices of economic benefits
Examples of Liabilities - Answers✔Payables, loans, unearned revenues
Equity - Answers✔Residual interest in the assets of an entity, remains after deducting liabilities
from assets (Stockholder's Equity)
Investments by Owners - Answers✔Increase in net assets of an entity
Transfers of value or increases in ownership interests or equity of a firm
Examples of Investments by Owners - Answers✔Common stock, paid-in capital
Distributions to Owners - Answers✔Decreases in net assets of an entity resulting from
transferring assets, rendering services, or incurring liabilities by the entity to owners
Examples of Distributions to Owners - Answers✔Dividends
Comprehensive Income - Answers✔Change in equity (net assets) of an entity during a given
period and includes all revenue and gains, expenses and losses than affect net income or
stockholder's equity
Revenues - Answers✔Inflows or other enhancements of assets or settlements of liabilities during
a period
Expenses - Answers✔Outflows or other using up of assets or incurrences of liabilities (or a
combo of both)
Gains - Answers✔increases in equity (net assets) from peripheral or incidental transactions, and
from all other transactions excluding revenues and investments by owners
Losses - Answers✔Decreases in equity (net assets) from peripheral or incidental transactions,
and from all other transactions excluding expenses and distributions to owners
Chapter 2 - Answers✔Accounting Information System
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ACCT5101 Midterm Study Guide.
Chapter 1 - Answers✔Accounting Concepts
Asset - Answers✔Probable future economic benefits
Examples of Assets - Answers✔Cash, accounts receivable, supplies, inventory, land, patents
Liabilities - Answers✔Probable future sacrifices of economic benefits
Examples of Liabilities - Answers✔Payables, loans, unearned revenues
Equity - Answers✔Residual interest in the assets of an entity, remains after deducting liabilities
from assets (Stockholder's Equity)
Investments by Owners - Answers✔Increase in net assets of an entity
Transfers of value or increases in ownership interests or equity of a firm
Examples of Investments by Owners - Answers✔Common stock, paid-in capital
Distributions to Owners - Answers✔Decreases in net assets of an entity resulting from
transferring assets, rendering services, or incurring liabilities by the entity to owners
Examples of Distributions to Owners - Answers✔Dividends
Comprehensive Income - Answers✔Change in equity (net assets) of an entity during a given
period and includes all revenue and gains, expenses and losses than affect net income or
stockholder's equity
Revenues - Answers✔Inflows or other enhancements of assets or settlements of liabilities during
a period
Expenses - Answers✔Outflows or other using up of assets or incurrences of liabilities (or a
combo of both)
Gains - Answers✔increases in equity (net assets) from peripheral or incidental transactions, and
from all other transactions excluding revenues and investments by owners
Losses - Answers✔Decreases in equity (net assets) from peripheral or incidental transactions,
and from all other transactions excluding expenses and distributions to owners
Chapter 2 - Answers✔Accounting Information System
1
