ACCOUNTING 284 FINAL EXAM IOWA STATE
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. What is the Balance Sheet equation?
Answer:
Assets = Liabilities + Stockholders' Equity
Question:
2. What 2 things make up stockholders equity?
Answer:
Contributed Capital and Retained Earnings
Question:
3. Which Financial accounting system reports at a certain
point in time?
Answer:
Balance sheet
Question:
4. What makes up an Asset?
Answer:
cash, PP+E, inventory, accounts receivable, pre-paid expenses
Question:
5. What makes up a Liability?
Answer:
_______ payable, accrued _______ , unearned revenue
Question:
6. What is the Statement of Retained Earnings equation?
Answer:
ERE = BRE + NI - D
,Question:
7. If a business is in its first year of operation, their BRE
would equal?
Answer:
0
Question:
8. Last years EDE is _____ BRE.
Answer:
this years
Question:
9. What is the Income statement equation?
Answer:
Revenues - Expenses = Net Income
Question:
10. What is revenue?
Answer:
sales, rent, interest, dividends
Question:
11. What is an expense?
Answer:
COGS, tax, salaries and wages, utilities, insurance, debt = interest
Question:
12. What is the Statement of cash flow equation?
Answer:
Cash flow from OPERATING activities +
cash flow from INVESTING activities +
cash flow from FINANCING activities =
Change in Cash
Question:
13. Investing activities include all ____ ?
Answer:
assets
, Question:
14. Financing activities include all ____ ?
Answer:
liabilities and stockholders
Question:
15. What is a transaction analysis?
Answer:
determining the economic effect of a transaction on the accounting equation
A=L+SE.
Every transaction will affect at least 2 accounts.
It must always remain balanced
Question:
16. When using T-account the amount recorded on the left
side of the T is called a_____
Answer:
debit
Question:
17. When using T-account the amount recorded on the right
side of the T-account is called a_____
Answer:
credit
Question:
18. On the debit side of Assets theres a ____ sign and on the
credit side of Assets theres a ____ sign.
Answer:
positive, negative
Question:
19. On the debit side of Liabilities theres a ____ sign and on the
credit side of Liabilities theres a ____ sign.
Answer:
negative, postive
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. What is the Balance Sheet equation?
Answer:
Assets = Liabilities + Stockholders' Equity
Question:
2. What 2 things make up stockholders equity?
Answer:
Contributed Capital and Retained Earnings
Question:
3. Which Financial accounting system reports at a certain
point in time?
Answer:
Balance sheet
Question:
4. What makes up an Asset?
Answer:
cash, PP+E, inventory, accounts receivable, pre-paid expenses
Question:
5. What makes up a Liability?
Answer:
_______ payable, accrued _______ , unearned revenue
Question:
6. What is the Statement of Retained Earnings equation?
Answer:
ERE = BRE + NI - D
,Question:
7. If a business is in its first year of operation, their BRE
would equal?
Answer:
0
Question:
8. Last years EDE is _____ BRE.
Answer:
this years
Question:
9. What is the Income statement equation?
Answer:
Revenues - Expenses = Net Income
Question:
10. What is revenue?
Answer:
sales, rent, interest, dividends
Question:
11. What is an expense?
Answer:
COGS, tax, salaries and wages, utilities, insurance, debt = interest
Question:
12. What is the Statement of cash flow equation?
Answer:
Cash flow from OPERATING activities +
cash flow from INVESTING activities +
cash flow from FINANCING activities =
Change in Cash
Question:
13. Investing activities include all ____ ?
Answer:
assets
, Question:
14. Financing activities include all ____ ?
Answer:
liabilities and stockholders
Question:
15. What is a transaction analysis?
Answer:
determining the economic effect of a transaction on the accounting equation
A=L+SE.
Every transaction will affect at least 2 accounts.
It must always remain balanced
Question:
16. When using T-account the amount recorded on the left
side of the T is called a_____
Answer:
debit
Question:
17. When using T-account the amount recorded on the right
side of the T-account is called a_____
Answer:
credit
Question:
18. On the debit side of Assets theres a ____ sign and on the
credit side of Assets theres a ____ sign.
Answer:
positive, negative
Question:
19. On the debit side of Liabilities theres a ____ sign and on the
credit side of Liabilities theres a ____ sign.
Answer:
negative, postive
