Final Exam ACCT 2101 GSU Questions and Correct Answers.

Final Exam ACCT 2101 GSU Questions
and Correct Answers.
retained earnings - Answer An amount earned by a corporation and not yet distributed to
stockholders.



property - Answer anything of value that is owned or controlled



plant and equipment - Answer Property that will be used in the business for longer than one
year.



assets - Answer money and other valuables belonging to an individual or business



liabilities - Answer Amounts owed to creditors



Stockholders' Equity - Answer The owners' claim to assets.



Accounting Equation - Answer Assets = Liabilities + Owner's Equity



Book Value - Answer the difference between the cost of a depreciable asset and its related
accumulated depreciation



Depreciation - Answer A decrease or loss in value



adjusting entries - Answer Entries made at the end of an accounting period to ensure that the
revenue recognition and expense recognition principles are followed.



Bad Debt Expense - Answer The amount of the adjustment to the allowance for uncollectible
accounts, representing the cost of estimated future bad debts charged to the current period.



Cost Flow Methods - Answer FIFO, LIFO, Average Cost