ACC 101 Exam questions and
answers rated 100%
Accounting Equation - ANS✅✅Assets = liabilities + equity
Current Ratio Equation - ANS✅✅current assets/current liabilities
Stockholders equity equation - ANS✅✅beginning equity + common stock issued + net income (or -
net loss) - dividends = end equity
Net income equation - ANS✅✅revenues - expenses
Equity Equation - ANS✅✅assets - liabilities
Retained earnings balance at end of period equation - ANS✅✅ending equity - common stock =
ending retained earnings
Full accounting equation - ANS✅✅assets = liabilities + (Revenue - (expenses + dividends))
Solving for missing expense - ANS✅✅beginning retained earnings + revenues - dividends - end
retaining earnings = expense
Debt Ratio - ANS✅✅total liabilities/ total assets
Amount of interest - ANS✅✅Principal X Interest Rate X Time
Solving for used items - ANS✅✅items before adjustments - items used = items on hand
Straight-line depreciation - ANS✅✅(cost- residual value)/ useful life
Book value - ANS✅✅cost - accumulated depreciation
, Net cost of inventory purchased (or net cost of merchandise inventory) - ANS✅✅purchase cost of
inventory - purchase returns and allowances - purchase discounts + freight in
Inventory Shrinkage (adjusting entry) - ANS✅✅merchandise inventory balance before adjustment
- actual merchandise on hand
Net sales revenue - ANS✅✅Sales Revenue - discounts
Operating Income - ANS✅✅gross profit- operating expenses
Gross Profit % - ANS✅✅gross profit/ net sales revenue
Net Purchases - ANS✅✅purchases - purchases returns and allowances - purchase discount
Gross Profit - ANS✅✅net sales - cost of goods sold
Cash Ratio - ANS✅✅(cash + cash equivalents)/ total current liabilities
Net realizable Value - ANS✅✅accounts receivable - allowance for bad debts
Bad Debt: Percent of Sales Method - ANS✅✅net credit sales X %
Bad Debt: Percentage of Receivables - ANS✅✅Target Balance +/- unadjusted balance of allowance
for bad debts
Target Balance - ANS✅✅end balance of accounts receivable X %
Bad Debt: Aging - ANS✅✅target Balance +/- unadjusted balance of allowance for bad debts
Acid Test Ratio - ANS✅✅(cash including cash equity + short-term investments + net current
receivables)/ total current liabilities
answers rated 100%
Accounting Equation - ANS✅✅Assets = liabilities + equity
Current Ratio Equation - ANS✅✅current assets/current liabilities
Stockholders equity equation - ANS✅✅beginning equity + common stock issued + net income (or -
net loss) - dividends = end equity
Net income equation - ANS✅✅revenues - expenses
Equity Equation - ANS✅✅assets - liabilities
Retained earnings balance at end of period equation - ANS✅✅ending equity - common stock =
ending retained earnings
Full accounting equation - ANS✅✅assets = liabilities + (Revenue - (expenses + dividends))
Solving for missing expense - ANS✅✅beginning retained earnings + revenues - dividends - end
retaining earnings = expense
Debt Ratio - ANS✅✅total liabilities/ total assets
Amount of interest - ANS✅✅Principal X Interest Rate X Time
Solving for used items - ANS✅✅items before adjustments - items used = items on hand
Straight-line depreciation - ANS✅✅(cost- residual value)/ useful life
Book value - ANS✅✅cost - accumulated depreciation
, Net cost of inventory purchased (or net cost of merchandise inventory) - ANS✅✅purchase cost of
inventory - purchase returns and allowances - purchase discounts + freight in
Inventory Shrinkage (adjusting entry) - ANS✅✅merchandise inventory balance before adjustment
- actual merchandise on hand
Net sales revenue - ANS✅✅Sales Revenue - discounts
Operating Income - ANS✅✅gross profit- operating expenses
Gross Profit % - ANS✅✅gross profit/ net sales revenue
Net Purchases - ANS✅✅purchases - purchases returns and allowances - purchase discount
Gross Profit - ANS✅✅net sales - cost of goods sold
Cash Ratio - ANS✅✅(cash + cash equivalents)/ total current liabilities
Net realizable Value - ANS✅✅accounts receivable - allowance for bad debts
Bad Debt: Percent of Sales Method - ANS✅✅net credit sales X %
Bad Debt: Percentage of Receivables - ANS✅✅Target Balance +/- unadjusted balance of allowance
for bad debts
Target Balance - ANS✅✅end balance of accounts receivable X %
Bad Debt: Aging - ANS✅✅target Balance +/- unadjusted balance of allowance for bad debts
Acid Test Ratio - ANS✅✅(cash including cash equity + short-term investments + net current
receivables)/ total current liabilities
