ACC Final Exam Questions and Answers
What is the accounting equation? - Answer-Assets = Liabilities + Owner's Equity
Revenues will increase ___ and will increase ___ - Answer--assets
-owners (stock holders) equity
Expenses paid with cash will decrease ___ and will decrease ___. - Answer--assets
-owner's (stockholders') equity.
Expenses incurred by use of credit will increase ___ and will decrease ___. - Answer--liabilities
-owner's (stockholders')
equity
A bank loan will increase ___ and will increase ___. - Answer--assets
-liabilities
Purchase of equipment for cash will ___ one asset and will ___ another asset - Answer--increase
, -decrease
The ___ ___ reflects the accounting equation. - Answer-balance sheet
cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, equipment, and
goodwill... these are all examples of what account?? - Answer-assets
notes or loans payable, accounts payable, salaries and wages payable, interest payable, and income
taxes payable (if the company is a regular corporation)....these are all examples of what account? -
Answer-liabilities
___ ___ is the amount left over after liabilities are deducted from assets - Answer--Owner's equity or
stockholders' equity
this contains all of the balance sheet and income statement accounts - Answer-general ledger
the financial statement that reports a company's revenues and expenses (& temporary accounts) and
the resulting net income. - Answer-income statement
the financial statement that covers a time interval or period of time. - Answer-income statement
sales - cost of goods sold = - Answer-gross profit
beginning finished goods inventory + net purchases (or cost of goods
manufactured) - ending finished goods inventory = - Answer-cost of goods sold
Accounts that are closed at the end of the accounting year so that they begin
What is the accounting equation? - Answer-Assets = Liabilities + Owner's Equity
Revenues will increase ___ and will increase ___ - Answer--assets
-owners (stock holders) equity
Expenses paid with cash will decrease ___ and will decrease ___. - Answer--assets
-owner's (stockholders') equity.
Expenses incurred by use of credit will increase ___ and will decrease ___. - Answer--liabilities
-owner's (stockholders')
equity
A bank loan will increase ___ and will increase ___. - Answer--assets
-liabilities
Purchase of equipment for cash will ___ one asset and will ___ another asset - Answer--increase
, -decrease
The ___ ___ reflects the accounting equation. - Answer-balance sheet
cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, equipment, and
goodwill... these are all examples of what account?? - Answer-assets
notes or loans payable, accounts payable, salaries and wages payable, interest payable, and income
taxes payable (if the company is a regular corporation)....these are all examples of what account? -
Answer-liabilities
___ ___ is the amount left over after liabilities are deducted from assets - Answer--Owner's equity or
stockholders' equity
this contains all of the balance sheet and income statement accounts - Answer-general ledger
the financial statement that reports a company's revenues and expenses (& temporary accounts) and
the resulting net income. - Answer-income statement
the financial statement that covers a time interval or period of time. - Answer-income statement
sales - cost of goods sold = - Answer-gross profit
beginning finished goods inventory + net purchases (or cost of goods
manufactured) - ending finished goods inventory = - Answer-cost of goods sold
Accounts that are closed at the end of the accounting year so that they begin
