ACC - EXAM 1 QUESTIONS AND ANSWERS

ACC - EXAM 1 QUESTIONS AND
ANSWERS




What is a transaction? - Answer-exchanging one thing for another



What is the equation for Balance Sheet? - Answer-A = L + OE



What is the equation for Income? - Answer-Rev - Exp = Income



Name all of the assets that you can: - Answer-a) Cash

b) Inv

c) Equipment

d) Supplies

e) Accounts Receivable

f) prepaid expenses

g) land

h) buildings

, Name all of the Liabilities that you can: - Answer-accounts payable

notes payable

any type of loan

past due bills

accounts



____ are the resources owned by a company from which future economic benefits are expected. -
Answer-assets



In short, an asset is the _____ a company _____ and examples would include - Answer-stuff, owns

inventory, equipment, cash, buildings



______ are obligations of an entity arising from past transactions, the settlement of which may result in
the transfer or use of assets - Answer-Liabilities



in short, a liability is any amount a company _____ and examples would include - Answer-owes

loans, notes and accounts payable



______ is the ownership right of the owners of the entity in the assets that remain after deducting the
liabilities. - Answer-Owner's equity



in short, owner's equity is the amount the owners have _____ in the company. - Answer-invested



Owner's equity is usually divided into two categories _____ and _____. - Answer-Retained Earnings and
Capital