8/11/26, 12:01 PM ACCT 3110 entrance exam based off acct 2010 reviews Flashcards | Quizlet
How would the issuance of common stock for cash affect the accounting equation?
Increase assets and increase stockholders' equity
Which financial statement would show how well a company performed over the past
year?
Income Statement
Assets are increased
by debits
Liabilities are decreased
by debits
Revenues are increased
by credits
Jordan purchases a new delivery truck for his business and signs a note payable at the
truck dealership for the total cost. The impact of this transaction on Jordan's business
Increases assets and increases liabilities
Which of the following accounts has a normal credit balance?
Unearned Revenue
Receiving cash from a customer on account will
have no effect on total assets
Which is the correct sequence for recording transactions and preparing financial
statements?
Journal, ledger. trial balance, financial statements
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, 8/11/26, 12:01 PM ACCT 3110 entrance exam based off acct 2010 reviews Flashcards | Quizlet
If the credit to record the payment of an account payable is not posted
Cash will be overstated
Under accrual accounting, revenue should be recorded:
When goods have been delivered to customer
An adjusting entry to accrue salary expenses that will be paid next period will have
what effect on the accounting equation?
Liabilities increase, equity decreases
Which of the following accounts would need to be closed at the end of the period?
Supplies expense
What type of account is unearned revenue?
a liability
A major purpose of preparing closing entries is to
update the Retained Earnings account
Current Ratio Formula
Current Ratio = Current Assets divided by Current Liabilities
Net Working Capital (NWC)
current assets minus current liabilities
Adjustments
Changes recorded on a worksheet to update general ledger accounts at the end of a
fiscal period, cash is never affected
https://quizlet.com/448770914/acct-3110-entrance-exam-based-off-acct-2010-reviews-flash-cards/ 3/10
How would the issuance of common stock for cash affect the accounting equation?
Increase assets and increase stockholders' equity
Which financial statement would show how well a company performed over the past
year?
Income Statement
Assets are increased
by debits
Liabilities are decreased
by debits
Revenues are increased
by credits
Jordan purchases a new delivery truck for his business and signs a note payable at the
truck dealership for the total cost. The impact of this transaction on Jordan's business
Increases assets and increases liabilities
Which of the following accounts has a normal credit balance?
Unearned Revenue
Receiving cash from a customer on account will
have no effect on total assets
Which is the correct sequence for recording transactions and preparing financial
statements?
Journal, ledger. trial balance, financial statements
https://quizlet.com/448770914/acct-3110-entrance-exam-based-off-acct-2010-reviews-flash-cards/ 2/10
, 8/11/26, 12:01 PM ACCT 3110 entrance exam based off acct 2010 reviews Flashcards | Quizlet
If the credit to record the payment of an account payable is not posted
Cash will be overstated
Under accrual accounting, revenue should be recorded:
When goods have been delivered to customer
An adjusting entry to accrue salary expenses that will be paid next period will have
what effect on the accounting equation?
Liabilities increase, equity decreases
Which of the following accounts would need to be closed at the end of the period?
Supplies expense
What type of account is unearned revenue?
a liability
A major purpose of preparing closing entries is to
update the Retained Earnings account
Current Ratio Formula
Current Ratio = Current Assets divided by Current Liabilities
Net Working Capital (NWC)
current assets minus current liabilities
Adjustments
Changes recorded on a worksheet to update general ledger accounts at the end of a
fiscal period, cash is never affected
https://quizlet.com/448770914/acct-3110-entrance-exam-based-off-acct-2010-reviews-flash-cards/ 3/10
