UH MANOA ACC 210 MIDTERM STUDY GUIDE
Assets Equation Correct Answer Assets = Liabilities + Equity
ASSETS: Which side increases and which side decreases on a
T-table? Correct Answer Debit for Increases
Credit for Decrease
COMMON STOCK: Which side increases and which side
decreases on a T-table? Correct Answer Debit for Decreases
Credit for Increases
Define Posting Correct Answer transferring journal entries
information to the ledger
DIVIDENDS: Which side increases and which side decreases on
a T-table? Correct Answer Debit for Increases
Credit for Decreases
Double Entry System of All Accounts Correct Answer
Equity Equation Correct Answer Equity = Assets - Liabilities
EQUITY: Which side increases and which side decreases on a
T-table? Correct Answer Debit for Decreases
Credit for Increases
EXPENSES: Which side increases and which side decreases on
a T-table? Correct Answer Debit for Increases
Credit for Decreases
, How do you prepare financial statements? Correct Answer
Using the income statement, statement of retained earnings, and
balance sheet
LIABILITIES: Which side increases and which side decreases
on a T-table? Correct Answer Debit for Decreases
Credit for Increases
Net Income Equation Correct Answer Net Income =
Revenues - Expenses
Retained Earnings Equation Correct Answer Beginning
Retained Earnings + Net Income - Dividends = Ending Retained
Earnings
REVENUES: Which side increases and which side decreases on
a T-table? Correct Answer Debit for Decreases
Credit for Increases
What are Chart of Accounts Journal/General Journal? Correct
Answer a list of all ledger accounts with an identification
number assigned to each account (three-digit codes)
What are closing entries? Correct Answer
Temporary/Nominal Accounts: revenues, expenses, dividends
Permanent/Real Accounts: assets, liabilities, equity (first level)
What are examples of asset accounts? Correct Answer cash,
accounts receivable, notes receivable, prepaid accounts,
supplies, equipment, building, land
Assets Equation Correct Answer Assets = Liabilities + Equity
ASSETS: Which side increases and which side decreases on a
T-table? Correct Answer Debit for Increases
Credit for Decrease
COMMON STOCK: Which side increases and which side
decreases on a T-table? Correct Answer Debit for Decreases
Credit for Increases
Define Posting Correct Answer transferring journal entries
information to the ledger
DIVIDENDS: Which side increases and which side decreases on
a T-table? Correct Answer Debit for Increases
Credit for Decreases
Double Entry System of All Accounts Correct Answer
Equity Equation Correct Answer Equity = Assets - Liabilities
EQUITY: Which side increases and which side decreases on a
T-table? Correct Answer Debit for Decreases
Credit for Increases
EXPENSES: Which side increases and which side decreases on
a T-table? Correct Answer Debit for Increases
Credit for Decreases
, How do you prepare financial statements? Correct Answer
Using the income statement, statement of retained earnings, and
balance sheet
LIABILITIES: Which side increases and which side decreases
on a T-table? Correct Answer Debit for Decreases
Credit for Increases
Net Income Equation Correct Answer Net Income =
Revenues - Expenses
Retained Earnings Equation Correct Answer Beginning
Retained Earnings + Net Income - Dividends = Ending Retained
Earnings
REVENUES: Which side increases and which side decreases on
a T-table? Correct Answer Debit for Decreases
Credit for Increases
What are Chart of Accounts Journal/General Journal? Correct
Answer a list of all ledger accounts with an identification
number assigned to each account (three-digit codes)
What are closing entries? Correct Answer
Temporary/Nominal Accounts: revenues, expenses, dividends
Permanent/Real Accounts: assets, liabilities, equity (first level)
What are examples of asset accounts? Correct Answer cash,
accounts receivable, notes receivable, prepaid accounts,
supplies, equipment, building, land
