Acct 201A CSUF First Midterm CORRECT 100%

Acct 201A CSUF First Midterm
CORRECT 100%
Income Statement - ANSWERRevenues-Expenses=Net Income/Loss
Loss if Expenses>Revenues
Income if Revenues>Expenses

Liabilities Effect on Debit/Credit - ANSWERDebit Down/Credit Up

Assets Effect on Debit/Credit - ANSWERDebit Up/Credit Down

Equity Effect on Debit Credit - ANSWERDebit Down/Credit Up


Retained Earnings Statement - ANSWERNet Income-Dividends=Retained Earnings

Basic Accounting Equation - ANSWERAssets=Liabilities+Stockholder's Equity
Goes on Balance Sheet

Stockholder's Equity - ANSWERCommon Stock+Dividends

Order of Liquidity of Current Assets - ANSWER1. Cash
2. Short-term Investments
3. Accounts Receivable
4. Inventory
5. Prepaid Expenses

Debit/Credit System - ANSWERLeft and Right Side of account

Expenses/Revenues effect on Debit/Credit - ANSWERExpenses go up in
debit/revenue goes up in credit