ACCT 2000 EXAM 1 REVIEW QUESTIONS
WITH CORRECT ANSWERS 2025
Accounting system is a system of... - CORRECT ANSWER -
collecting, processing transaction data, and communicating
basic acct equation - CORRECT ANSWER -Assets= Liabilities +Stockholder's Equity
2 sides of basic acct equation must always be... - CORRECT ANSWER -equal
Net Income= - CORRECT ANSWER -Revenue-Expenses
Retained Earnings= - CORRECT ANSWER -Beginning Retained Earnings + Net Income - Dividends
2 components of Stockholder's Equity are: - CORRECT ANSWER -Common Stock + Retained Earnings
Due to interrelationships, statements must be completed in this order - CORRECT ANSWER -
1) INcome Statement 2)Retained Earnings Statement 3) Balance Sheet
Factors of income statements include, - CORRECT ANSWER -
lists of revenue and expenses, cover a specific period of time, show net income or net loss
Factors of Retained Earnings sheet include, - CORRECT ANSWER -
changes in retained earnings over a period of time, finds new retained earning amount
Factors of Balance Sheet include, - CORRECT ANSWER -
reports assets, liabilities, and stockholder's equity. Assets must = liabilities + Stockholder's Equity. Prep
ared as of a specific date. ending retained earnings not included on balance sheet
Internal Users - CORRECT ANSWER -people within the business who use financial information -
owners, managers, and employees.
WITH CORRECT ANSWERS 2025
Accounting system is a system of... - CORRECT ANSWER -
collecting, processing transaction data, and communicating
basic acct equation - CORRECT ANSWER -Assets= Liabilities +Stockholder's Equity
2 sides of basic acct equation must always be... - CORRECT ANSWER -equal
Net Income= - CORRECT ANSWER -Revenue-Expenses
Retained Earnings= - CORRECT ANSWER -Beginning Retained Earnings + Net Income - Dividends
2 components of Stockholder's Equity are: - CORRECT ANSWER -Common Stock + Retained Earnings
Due to interrelationships, statements must be completed in this order - CORRECT ANSWER -
1) INcome Statement 2)Retained Earnings Statement 3) Balance Sheet
Factors of income statements include, - CORRECT ANSWER -
lists of revenue and expenses, cover a specific period of time, show net income or net loss
Factors of Retained Earnings sheet include, - CORRECT ANSWER -
changes in retained earnings over a period of time, finds new retained earning amount
Factors of Balance Sheet include, - CORRECT ANSWER -
reports assets, liabilities, and stockholder's equity. Assets must = liabilities + Stockholder's Equity. Prep
ared as of a specific date. ending retained earnings not included on balance sheet
Internal Users - CORRECT ANSWER -people within the business who use financial information -
owners, managers, and employees.
