ACCOUNTING 200 FINAL EXAM STUDY GUIDE
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. Income Statement Equation
Answer:
Revenues - Expenses = Net Income/Net Loss
Question:
2. Statement of Retained Earnings Equation
Answer:
Beginning Retained Earnings + Net Income - Dividends = Ending Retained
Earnings
Question:
3. Accounting Equation - Stockholders Equity
Answer:
Stockholders Equity = Common Stock + End R/E
Question:
4. Accounting Equation - Assets
Answer:
Assets = Liability + Stockholders Equity
Question:
5. Rules of Normal Balance - Debit
Answer:
Debits Increase Expenses, Assets, Dividends (Credits Decrease)
Question:
6. Rules of Normal Balance - Credits
Answer:
Credits Increase Liability, Equity, Revenues
,Question:
7. Normal balance is the side where ? In the account are
recorded
Answer:
Increases
Question:
8. If an amount/entry is too high it is...?
Answer:
Overstated
Question:
9. If an amount/entry is too low it is...?
Answer:
Understated
Question:
10. Journal Entry when a sale is made on account
Answer:
Dr. A/R (Accounts Receivable)
Cr. Sales (Revenue)
Question:
11. Journal Entry to record the collection of A/R (Accounts
Receivable)
Answer:
Dr. Cash
Cr. A/R (Accounts Receivable)
Question:
12. Accounts Payable
Answer:
Current Liabilities
Balance Sheet
Could be both a Debit or Credit
Question:
13. Accumulated Depreciation - Building
Answer:
Property, Plant, Equipment
Balance Sheet
Credit
, Question:
14. Accounts Receivable
Answer:
Current Asset
Balance Sheet
Debit
Question:
15. Accumulated Depreciation - Equipment
Answer:
Property, Plant, Equipment (PPE)
Balance Sheet
Credit
Question:
16. Accumulated Depreciation - Furniture
Answer:
Property Plant, and Equipment (PPE)
Balance Sheet
Credit
Question:
17. Bonds Payable
Answer:
Long Term Liabilities
Balance Sheet
Credit
Question:
18. Building
Answer:
Property Plant & Equipment
Balance Sheet
Debit
Question:
19. Cash
Answer:
Current Asset
Balance Sheet
Debit
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. Income Statement Equation
Answer:
Revenues - Expenses = Net Income/Net Loss
Question:
2. Statement of Retained Earnings Equation
Answer:
Beginning Retained Earnings + Net Income - Dividends = Ending Retained
Earnings
Question:
3. Accounting Equation - Stockholders Equity
Answer:
Stockholders Equity = Common Stock + End R/E
Question:
4. Accounting Equation - Assets
Answer:
Assets = Liability + Stockholders Equity
Question:
5. Rules of Normal Balance - Debit
Answer:
Debits Increase Expenses, Assets, Dividends (Credits Decrease)
Question:
6. Rules of Normal Balance - Credits
Answer:
Credits Increase Liability, Equity, Revenues
,Question:
7. Normal balance is the side where ? In the account are
recorded
Answer:
Increases
Question:
8. If an amount/entry is too high it is...?
Answer:
Overstated
Question:
9. If an amount/entry is too low it is...?
Answer:
Understated
Question:
10. Journal Entry when a sale is made on account
Answer:
Dr. A/R (Accounts Receivable)
Cr. Sales (Revenue)
Question:
11. Journal Entry to record the collection of A/R (Accounts
Receivable)
Answer:
Dr. Cash
Cr. A/R (Accounts Receivable)
Question:
12. Accounts Payable
Answer:
Current Liabilities
Balance Sheet
Could be both a Debit or Credit
Question:
13. Accumulated Depreciation - Building
Answer:
Property, Plant, Equipment
Balance Sheet
Credit
, Question:
14. Accounts Receivable
Answer:
Current Asset
Balance Sheet
Debit
Question:
15. Accumulated Depreciation - Equipment
Answer:
Property, Plant, Equipment (PPE)
Balance Sheet
Credit
Question:
16. Accumulated Depreciation - Furniture
Answer:
Property Plant, and Equipment (PPE)
Balance Sheet
Credit
Question:
17. Bonds Payable
Answer:
Long Term Liabilities
Balance Sheet
Credit
Question:
18. Building
Answer:
Property Plant & Equipment
Balance Sheet
Debit
Question:
19. Cash
Answer:
Current Asset
Balance Sheet
Debit
