ACC 101 Exam questions and
answers graded 100%
Accounting Equation - ANS✅✅Assets= Liabilities + stockholder's equity
Assets - ANS✅✅Resources owned by company
Liabilities - ANS✅✅Rights of the creditors or amounts owed to creditors
Equity - ANS✅✅Rights of the owner
AED - ANS✅✅Assets, Expenses, Dividends = Normal debit balance and increase on the debit side
LER - ANS✅✅Liabilities, Equity, Revenue = Normal credit balances and increase on the credit side
Assets examples - ANS✅✅Accounts receivable, Cash, Supplies, Inventory, Prepaids
Liabilities examples - ANS✅✅Accounts payable, Wages Payable, Salaries Payable, Unearned
Revenue, Unearned rent,
Equity Examples - ANS✅✅Retained earnings
Capital/Common stock
Revenue Examples - ANS✅✅Rent Revenue, Sales, Fees earned
Expenses Examples - ANS✅✅Wages Expense, Salaries Expense, Supplies Expense, Utilities
Expense, Misc. Expense
Balance Sheet - ANS✅✅Assets, Liabilities and Equity
Income statement - ANS✅✅Revenue and expenses
, Rotten Eggs IS Disgusting.... REally - ANS✅✅Revenue and expenses closed to income summary,
Income summary and dividends closed to retained earnings
*** Balance sheet accounts are NOT closed
Accounting Cycle - ANS✅✅Journal> Legder> Trial balance (unadjusted) > journal > Legder > Trial
balance (Adjusted) > Financial statements > Journal > Ledger >Post-closing trial balance
Omitting adjusting entries - ANS✅✅Omitting expenses- Net income overstated
Omitting revenues- Net income understated
5 Types of Adjusting Entries - ANS✅✅Prepaids
Accrued Expenses
Accrued Revenues
Unearned Fees
Depreciation
Prepaid Adjusting Entry - ANS✅✅Debit: Prepaid expense
Credit: Pre-paid account
ex: Pre-paid insurance expense 500
Pre-paid insurance 500
Depreciation Adjusting Entry - ANS✅✅Debit: Depreciation Expense
Credit: Accumulated Depreciation- ( fixed asset)
Unearned Revenue - ANS✅✅*** turning unearned into earned revenue
Debit: Unearned revenue (decrease liability)
answers graded 100%
Accounting Equation - ANS✅✅Assets= Liabilities + stockholder's equity
Assets - ANS✅✅Resources owned by company
Liabilities - ANS✅✅Rights of the creditors or amounts owed to creditors
Equity - ANS✅✅Rights of the owner
AED - ANS✅✅Assets, Expenses, Dividends = Normal debit balance and increase on the debit side
LER - ANS✅✅Liabilities, Equity, Revenue = Normal credit balances and increase on the credit side
Assets examples - ANS✅✅Accounts receivable, Cash, Supplies, Inventory, Prepaids
Liabilities examples - ANS✅✅Accounts payable, Wages Payable, Salaries Payable, Unearned
Revenue, Unearned rent,
Equity Examples - ANS✅✅Retained earnings
Capital/Common stock
Revenue Examples - ANS✅✅Rent Revenue, Sales, Fees earned
Expenses Examples - ANS✅✅Wages Expense, Salaries Expense, Supplies Expense, Utilities
Expense, Misc. Expense
Balance Sheet - ANS✅✅Assets, Liabilities and Equity
Income statement - ANS✅✅Revenue and expenses
, Rotten Eggs IS Disgusting.... REally - ANS✅✅Revenue and expenses closed to income summary,
Income summary and dividends closed to retained earnings
*** Balance sheet accounts are NOT closed
Accounting Cycle - ANS✅✅Journal> Legder> Trial balance (unadjusted) > journal > Legder > Trial
balance (Adjusted) > Financial statements > Journal > Ledger >Post-closing trial balance
Omitting adjusting entries - ANS✅✅Omitting expenses- Net income overstated
Omitting revenues- Net income understated
5 Types of Adjusting Entries - ANS✅✅Prepaids
Accrued Expenses
Accrued Revenues
Unearned Fees
Depreciation
Prepaid Adjusting Entry - ANS✅✅Debit: Prepaid expense
Credit: Pre-paid account
ex: Pre-paid insurance expense 500
Pre-paid insurance 500
Depreciation Adjusting Entry - ANS✅✅Debit: Depreciation Expense
Credit: Accumulated Depreciation- ( fixed asset)
Unearned Revenue - ANS✅✅*** turning unearned into earned revenue
Debit: Unearned revenue (decrease liability)
