Financial Accounting Final Exam (Ivy Tech)
questions with answers
Revenues - CORRECT ANSWERS ✔✔Gross increase in equity from a company's
business activities that earn income; also called sales.
Expenses - CORRECT ANSWERS ✔✔Outflows or using up of assets as part of
operations of a business to generate sales.
Accounts Receivable - CORRECT ANSWERS ✔✔Amounts to be received in the
future due to the sale of goods or services
Accounting Equation - CORRECT ANSWERS ✔✔Assets = Liabilities + Equity
Income Statement - CORRECT ANSWERS ✔✔describes a company's revenues and
expenses along with the resulting net income or loss over a period of time due to
earnings activities
Accounts on Income Statement - CORRECT ANSWERS ✔✔Revenues - Expenses
Balance Sheet - CORRECT ANSWERS ✔✔Financial statement that lists types and
dollar amounts of assets, liabilities, and equity at a specific date.
Accounts on balance sheet - CORRECT ANSWERS ✔✔assets, liabilities, equity
, Primary Objective of Financial Reporting - CORRECT ANSWERS ✔✔to provide
information that is useful to investors and creditors for decision making
Expanded Accounting Equation - CORRECT ANSWERS ✔✔Assets = Liabilities +
Common Stock + Revenues - Expenses - Dividends
FASB (Financial Accounting Standards Board) - CORRECT ANSWERS ✔✔sets
accounting standards (GAAP) in the U.S.
T account - CORRECT ANSWERS ✔✔debit left, credit right
Normal Balance of Expenses - CORRECT ANSWERS ✔✔Debit (decrease equity)
Normal balance of Revenues - CORRECT ANSWERS ✔✔credit
Normal Balance of dividends - CORRECT ANSWERS ✔✔Dr. (it decreases owner's
equity)
normal balance of assets - CORRECT ANSWERS ✔✔Debit Increases. Credit
decreases. NB: Debit.
normal balance of liabilities - CORRECT ANSWERS ✔✔credit increases, debit
decreases NB:Credit
Journal - CORRECT ANSWERS ✔✔Record in which transactions are entered before
they are posted to ledger accounts; also called book of original entry.
questions with answers
Revenues - CORRECT ANSWERS ✔✔Gross increase in equity from a company's
business activities that earn income; also called sales.
Expenses - CORRECT ANSWERS ✔✔Outflows or using up of assets as part of
operations of a business to generate sales.
Accounts Receivable - CORRECT ANSWERS ✔✔Amounts to be received in the
future due to the sale of goods or services
Accounting Equation - CORRECT ANSWERS ✔✔Assets = Liabilities + Equity
Income Statement - CORRECT ANSWERS ✔✔describes a company's revenues and
expenses along with the resulting net income or loss over a period of time due to
earnings activities
Accounts on Income Statement - CORRECT ANSWERS ✔✔Revenues - Expenses
Balance Sheet - CORRECT ANSWERS ✔✔Financial statement that lists types and
dollar amounts of assets, liabilities, and equity at a specific date.
Accounts on balance sheet - CORRECT ANSWERS ✔✔assets, liabilities, equity
, Primary Objective of Financial Reporting - CORRECT ANSWERS ✔✔to provide
information that is useful to investors and creditors for decision making
Expanded Accounting Equation - CORRECT ANSWERS ✔✔Assets = Liabilities +
Common Stock + Revenues - Expenses - Dividends
FASB (Financial Accounting Standards Board) - CORRECT ANSWERS ✔✔sets
accounting standards (GAAP) in the U.S.
T account - CORRECT ANSWERS ✔✔debit left, credit right
Normal Balance of Expenses - CORRECT ANSWERS ✔✔Debit (decrease equity)
Normal balance of Revenues - CORRECT ANSWERS ✔✔credit
Normal Balance of dividends - CORRECT ANSWERS ✔✔Dr. (it decreases owner's
equity)
normal balance of assets - CORRECT ANSWERS ✔✔Debit Increases. Credit
decreases. NB: Debit.
normal balance of liabilities - CORRECT ANSWERS ✔✔credit increases, debit
decreases NB:Credit
Journal - CORRECT ANSWERS ✔✔Record in which transactions are entered before
they are posted to ledger accounts; also called book of original entry.
