Accy 201 Final Exam || WITH 100% CORRECT
ANSWERS; SCORED A+
Accounting Definition correct answers The language of business
It's an information and measurement system that identifies, records, and communicates
External Users correct answers Not directly involved in running the organization
(FINANCIAL ACCOUNTING, lenders, shareholders, governments, consumer groups,
external auditors, customers)
Internal Users correct answers Directly involved in managing and operating an organization
(MANAGERIAL ACCOUNTING, officers, managers, internal auditors, sales staff, budget
officers, controllers)
GAAP correct answers The accounting rulebook that keeps us on the right track
Makes sure that relevant transactions, reliable information, comparable (everyone plays by
the same rules)
Measurement/Cost Principle correct answers Pay what it says
Revenue Recognition Principle correct answers Recognize revenue when it's earned
Expense Recognition Matching Principle correct answers Match the expense with the
revenue they have to produce
Full Disclosure Principle correct answers Responsibility to tell the truth
Going concern Assumption correct answers Will the business still be there
Monetary Unit Assumption correct answers In dollars
Time Period Assumption correct answers Can put a transaction to a certain time
Business Entity Assumption: Sole Proprietorship correct answers One owner, not a separate
legal entity from its owner, income not subjected to business income tax
Business Entity Assumption: Partnership correct answers Business owned by 2 or more
people, jointly liable, not legally separate from its owners
Business Entity Assumption: Corporation correct answers Legally separate from owners(s),
double taxed, has shareholders (stock)
Accounting Equation correct answers Assets = Liabilities + Owners Equity (+ C/S - Div +
Rev - Exp)
Income Statement correct answers Describes a company's revenues and expenses along with
net income or loss over a period of time
, Company Name
Income Statement
FME ___________
Rev
<Exp>
___________
NI
Statement of Retained Earnings correct answers Explains changes in equity from net income
or loss and from any dividends over a period of time
Company Name
Statement of Retained Earnings
FME _____________
Beg RE
+NI
-Div
___________
End RE
Balance Sheet correct answers Describes a company's financial position at a point of time
*No expenses
Company Name
Balance Sheet
As of ______
Assets
Liabilities
+Owners Equity (C/S & RE)
Asset correct answers Something you own
Liabilities correct answers Something you owe: anything "payable"
Equity correct answers Owners claim on assets
What has a debit normal balance correct answers ADE: Assets, Dividends, Expenses
What has a credit normal balance correct answers LCR: Liabilities, Common Stock, Revenue
Posting correct answers Transfer entries from journal to ledger
Trial Balance correct answers List of accounts and their balances at a point in time
Company Name
ANSWERS; SCORED A+
Accounting Definition correct answers The language of business
It's an information and measurement system that identifies, records, and communicates
External Users correct answers Not directly involved in running the organization
(FINANCIAL ACCOUNTING, lenders, shareholders, governments, consumer groups,
external auditors, customers)
Internal Users correct answers Directly involved in managing and operating an organization
(MANAGERIAL ACCOUNTING, officers, managers, internal auditors, sales staff, budget
officers, controllers)
GAAP correct answers The accounting rulebook that keeps us on the right track
Makes sure that relevant transactions, reliable information, comparable (everyone plays by
the same rules)
Measurement/Cost Principle correct answers Pay what it says
Revenue Recognition Principle correct answers Recognize revenue when it's earned
Expense Recognition Matching Principle correct answers Match the expense with the
revenue they have to produce
Full Disclosure Principle correct answers Responsibility to tell the truth
Going concern Assumption correct answers Will the business still be there
Monetary Unit Assumption correct answers In dollars
Time Period Assumption correct answers Can put a transaction to a certain time
Business Entity Assumption: Sole Proprietorship correct answers One owner, not a separate
legal entity from its owner, income not subjected to business income tax
Business Entity Assumption: Partnership correct answers Business owned by 2 or more
people, jointly liable, not legally separate from its owners
Business Entity Assumption: Corporation correct answers Legally separate from owners(s),
double taxed, has shareholders (stock)
Accounting Equation correct answers Assets = Liabilities + Owners Equity (+ C/S - Div +
Rev - Exp)
Income Statement correct answers Describes a company's revenues and expenses along with
net income or loss over a period of time
, Company Name
Income Statement
FME ___________
Rev
<Exp>
___________
NI
Statement of Retained Earnings correct answers Explains changes in equity from net income
or loss and from any dividends over a period of time
Company Name
Statement of Retained Earnings
FME _____________
Beg RE
+NI
-Div
___________
End RE
Balance Sheet correct answers Describes a company's financial position at a point of time
*No expenses
Company Name
Balance Sheet
As of ______
Assets
Liabilities
+Owners Equity (C/S & RE)
Asset correct answers Something you own
Liabilities correct answers Something you owe: anything "payable"
Equity correct answers Owners claim on assets
What has a debit normal balance correct answers ADE: Assets, Dividends, Expenses
What has a credit normal balance correct answers LCR: Liabilities, Common Stock, Revenue
Posting correct answers Transfer entries from journal to ledger
Trial Balance correct answers List of accounts and their balances at a point in time
Company Name
