PACE exam
what are assests - ANSresources controlled by company
basic elements of balance sheet - ANSassests
liabilities
stockholder equity
sole proprietorship - ANS1 person owning company
partnership - ANS2 or more owners
corporation - ANSseparate entityfrom legeal and accounting perspective
accounting equation - ANSA=L+SE
how are debits and credits displayed - ANSDR on left and CR on right
expenses - ANSall cost of doing business that are necessary to earn revenue
purpose of retained earnings - ANSreports the way net income and distribution of dividends
affect financial position
retained earning formula - ANSbeg RE + NI - DIVIDENDS=end RE
headings of financial statements contain - ANSCOMPANY NAME
TYPE OF STATEMENT
DATE
cash flows - ANSFinancing
Investing
Opertating
operating - ANSrunning the business; short term asset
change asset and liabilities
investing - ANSbuying and selling resources; long term asset
financing - ANSborrowing from banks ; long term liability; stocks and bonds
dividends - ANSdistribution of earnings
, revenue - ANSselling goods or services to customers
internal controls purposes - ANSmethods company use to protect against THEFT, enhance
RELIABILITY, promote EFFICIENCY, ensure COMPLIANCE WITH LAWS
separation of duties - ANSeach person assigned to specific job
internal controls - ANSensure accuracy in accounting reports
interest formula - ANS(P*R*T) principal, rate, time
current assests - ANSassests the busniess will use up or turn into cash within 12 months
current liability - ANSdebts and other obligations that will be paid or fulfilled within 12 months
matching principle - ANScost of employee wages is recorded in the same period that the
employees work to generate revenue for the company
adjusting entries are made to... - ANSretained revenue and expenses that have not been
recorded but belong in current period
accured expense - ANSexpense have been incurred but not paid
accured revenue - ANSrevenue that been earned but not collected
permanent accounts - ANSbalance sheet accounts (A, L, SE)
not closed at end of each period
temporary accounts - ANSincome statement accounts (Revenues, Expenses, Dividends
Declared)
are closed at end of each period
general ledger - ANSsummarizes effects of journal entries on each account
general journal - ANSto record the effects of each days transactions
service company - ANSsell services
retail company - ANSsell directly to individual customers
manufacturer - ANSsells goods that it has made itself
merchandiser - ANSsells goods that have been obtained from a supplier
what are assests - ANSresources controlled by company
basic elements of balance sheet - ANSassests
liabilities
stockholder equity
sole proprietorship - ANS1 person owning company
partnership - ANS2 or more owners
corporation - ANSseparate entityfrom legeal and accounting perspective
accounting equation - ANSA=L+SE
how are debits and credits displayed - ANSDR on left and CR on right
expenses - ANSall cost of doing business that are necessary to earn revenue
purpose of retained earnings - ANSreports the way net income and distribution of dividends
affect financial position
retained earning formula - ANSbeg RE + NI - DIVIDENDS=end RE
headings of financial statements contain - ANSCOMPANY NAME
TYPE OF STATEMENT
DATE
cash flows - ANSFinancing
Investing
Opertating
operating - ANSrunning the business; short term asset
change asset and liabilities
investing - ANSbuying and selling resources; long term asset
financing - ANSborrowing from banks ; long term liability; stocks and bonds
dividends - ANSdistribution of earnings
, revenue - ANSselling goods or services to customers
internal controls purposes - ANSmethods company use to protect against THEFT, enhance
RELIABILITY, promote EFFICIENCY, ensure COMPLIANCE WITH LAWS
separation of duties - ANSeach person assigned to specific job
internal controls - ANSensure accuracy in accounting reports
interest formula - ANS(P*R*T) principal, rate, time
current assests - ANSassests the busniess will use up or turn into cash within 12 months
current liability - ANSdebts and other obligations that will be paid or fulfilled within 12 months
matching principle - ANScost of employee wages is recorded in the same period that the
employees work to generate revenue for the company
adjusting entries are made to... - ANSretained revenue and expenses that have not been
recorded but belong in current period
accured expense - ANSexpense have been incurred but not paid
accured revenue - ANSrevenue that been earned but not collected
permanent accounts - ANSbalance sheet accounts (A, L, SE)
not closed at end of each period
temporary accounts - ANSincome statement accounts (Revenues, Expenses, Dividends
Declared)
are closed at end of each period
general ledger - ANSsummarizes effects of journal entries on each account
general journal - ANSto record the effects of each days transactions
service company - ANSsell services
retail company - ANSsell directly to individual customers
manufacturer - ANSsells goods that it has made itself
merchandiser - ANSsells goods that have been obtained from a supplier
