ACCY 200 EXAM 1 UIUC; Questions & Answers
100% Verified
Revenues are Correct answer-increases in net assets from selling a product
Paid-in Capital represents Correct answer-the amount invested in the entity by the
stockholders
The Statement of Cash Flows Correct answer-shows how cash changed during the period
Accrual accounting Correct answer-accomplishes much of the matching of revenues and
expenses
Stockholders' equity refers to Correct answer-the ownership right of the stockholders of
the entity
The effect of an adjustment is Correct answer-to increase the accuracy of the financial
statements
A credit entry will Correct answer-increase a liability account
The effect of an adjustment on the financial statement is usually to Correct answer-
increase the accuracy of both the balance sheet and income statement
, ACCY 200 EXAM 1 UIUC; Questions & Answers
100% Verified
Accounting equation: Correct answer-Assets = Liabilities + Paid-in Capital + Beginning
Retained Earnings + Revenues - Expenses - Dividends
When a firm purchases supplies for its business Correct answer-an adjustment will
probably be required as suppliers are used
The accrual of interest on short-term marketable securities results in Correct answer-an
increase in current assets and an increase in net income
An organization's system of internal control is designed primarily to Correct answer-
provide an operating framework for all employees as they work to achieve the organization's
goals
When a firm used the LIFO inventory cost flow assumption Correct answer-better
matching of revenue and expense is achieved than under FIFO
Accounts receivable are reported at Correct answer-net realizable value
The inventory cost flow assumption describes the flow of product cost Correct answer-
from the asset (inventory) account and to the expense (cost of goods sold) account
100% Verified
Revenues are Correct answer-increases in net assets from selling a product
Paid-in Capital represents Correct answer-the amount invested in the entity by the
stockholders
The Statement of Cash Flows Correct answer-shows how cash changed during the period
Accrual accounting Correct answer-accomplishes much of the matching of revenues and
expenses
Stockholders' equity refers to Correct answer-the ownership right of the stockholders of
the entity
The effect of an adjustment is Correct answer-to increase the accuracy of the financial
statements
A credit entry will Correct answer-increase a liability account
The effect of an adjustment on the financial statement is usually to Correct answer-
increase the accuracy of both the balance sheet and income statement
, ACCY 200 EXAM 1 UIUC; Questions & Answers
100% Verified
Accounting equation: Correct answer-Assets = Liabilities + Paid-in Capital + Beginning
Retained Earnings + Revenues - Expenses - Dividends
When a firm purchases supplies for its business Correct answer-an adjustment will
probably be required as suppliers are used
The accrual of interest on short-term marketable securities results in Correct answer-an
increase in current assets and an increase in net income
An organization's system of internal control is designed primarily to Correct answer-
provide an operating framework for all employees as they work to achieve the organization's
goals
When a firm used the LIFO inventory cost flow assumption Correct answer-better
matching of revenue and expense is achieved than under FIFO
Accounts receivable are reported at Correct answer-net realizable value
The inventory cost flow assumption describes the flow of product cost Correct answer-
from the asset (inventory) account and to the expense (cost of goods sold) account
