PACE exam with correct answers
what are assests - ➰CORRECT ANSWERS ✔✔resources controlled by
company
basic elements of balance sheet - ➰CORRECT ANSWERS ✔✔assests
liabilities
stockholder equity
sole proprietorship - ➰CORRECT ANSWERS ✔✔1 person owning company
partnership - ➰CORRECT ANSWERS ✔✔2 or more owners
corporation - ➰CORRECT ANSWERS ✔✔separate entityfrom legeal and
accounting perspective
accounting equation - ➰CORRECT ANSWERS ✔✔A=L+SE
how are debits and credits displayed - ➰CORRECT ANSWERS ✔✔DR on left
and CR on right
expenses - ➰CORRECT ANSWERS ✔✔all cost of doing business that are
necessary to earn revenue
,purpose of retained earnings - ➰CORRECT ANSWERS ✔✔reports the way
net income and distribution of dividends affect financial position
retained earning formula - ➰CORRECT ANSWERS ✔✔beg RE + NI -
DIVIDENDS=end RE
headings of financial statements contain - ➰CORRECT ANSWERS
✔✔COMPANY NAME
TYPE OF STATEMENT
DATE
cash flows - ➰CORRECT ANSWERS ✔✔Financing
Investing
Opertating
operating - ➰CORRECT ANSWERS ✔✔running the business; short term
asset
change asset and liabilities
investing - ➰CORRECT ANSWERS ✔✔buying and selling resources; long
term asset
financing - ➰CORRECT ANSWERS ✔✔borrowing from banks ; long term
liability; stocks and bonds
, dividends - ➰CORRECT ANSWERS ✔✔distribution of earnings
revenue - ➰CORRECT ANSWERS ✔✔selling goods or services to customers
internal controls purposes - ➰CORRECT ANSWERS ✔✔methods company
use to protect against THEFT, enhance RELIABILITY, promote EFFICIENCY,
ensure COMPLIANCE WITH LAWS
separation of duties - ➰CORRECT ANSWERS ✔✔each person assigned to
specific job
internal controls - ➰CORRECT ANSWERS ✔✔ensure accuracy in accounting
reports
interest formula - ➰CORRECT ANSWERS ✔✔(P*R*T) principal, rate, time
current assests - ➰CORRECT ANSWERS ✔✔assests the busniess will use up
or turn into cash within 12 months
current liability - ➰CORRECT ANSWERS ✔✔debts and other obligations that
will be paid or fulfilled within 12 months
what are assests - ➰CORRECT ANSWERS ✔✔resources controlled by
company
basic elements of balance sheet - ➰CORRECT ANSWERS ✔✔assests
liabilities
stockholder equity
sole proprietorship - ➰CORRECT ANSWERS ✔✔1 person owning company
partnership - ➰CORRECT ANSWERS ✔✔2 or more owners
corporation - ➰CORRECT ANSWERS ✔✔separate entityfrom legeal and
accounting perspective
accounting equation - ➰CORRECT ANSWERS ✔✔A=L+SE
how are debits and credits displayed - ➰CORRECT ANSWERS ✔✔DR on left
and CR on right
expenses - ➰CORRECT ANSWERS ✔✔all cost of doing business that are
necessary to earn revenue
,purpose of retained earnings - ➰CORRECT ANSWERS ✔✔reports the way
net income and distribution of dividends affect financial position
retained earning formula - ➰CORRECT ANSWERS ✔✔beg RE + NI -
DIVIDENDS=end RE
headings of financial statements contain - ➰CORRECT ANSWERS
✔✔COMPANY NAME
TYPE OF STATEMENT
DATE
cash flows - ➰CORRECT ANSWERS ✔✔Financing
Investing
Opertating
operating - ➰CORRECT ANSWERS ✔✔running the business; short term
asset
change asset and liabilities
investing - ➰CORRECT ANSWERS ✔✔buying and selling resources; long
term asset
financing - ➰CORRECT ANSWERS ✔✔borrowing from banks ; long term
liability; stocks and bonds
, dividends - ➰CORRECT ANSWERS ✔✔distribution of earnings
revenue - ➰CORRECT ANSWERS ✔✔selling goods or services to customers
internal controls purposes - ➰CORRECT ANSWERS ✔✔methods company
use to protect against THEFT, enhance RELIABILITY, promote EFFICIENCY,
ensure COMPLIANCE WITH LAWS
separation of duties - ➰CORRECT ANSWERS ✔✔each person assigned to
specific job
internal controls - ➰CORRECT ANSWERS ✔✔ensure accuracy in accounting
reports
interest formula - ➰CORRECT ANSWERS ✔✔(P*R*T) principal, rate, time
current assests - ➰CORRECT ANSWERS ✔✔assests the busniess will use up
or turn into cash within 12 months
current liability - ➰CORRECT ANSWERS ✔✔debts and other obligations that
will be paid or fulfilled within 12 months
