Accounting 211 questions with answers

Accounting 211 questions with answersAccounting Transactions - correct answer -Economic events that require recording in the financial statements -Exchange of assets, liabilities, and stockholders equity Accounting Equation - correct answer Assets = Liabilities + Stockholders' Equity Transaction Analysis - correct answer The process of identifying the specific effects of economic events on the accounting equation Stockholders' Equity - correct answer -Common stock is affected when the company issues new shares of stock in exchange for cash -Retained earnings is affected when the company recognizes revenue, incurs expenses, or pays dividends Expanded Accounting Equation - correct answer Assets = Liabilities + Common Stock + Revenues - Expenses - Dividends Account - correct answer -An individual accounting record of increases and decreases in a specific asset, liability, stockholders' equity, revenue, or expense -Consists of title of account, left debit side, right credit side -Referred to as a T-account Debit Balance - correct answer The total of the debit amounts exceeds the credits Credit Balance - correct answer The total of the credit amounts exceeds the debits Double-Entry System - correct answer -The two sided effect of each transaction is recorded in appropriate accounts -Helps to detect errors