V246 Exam 1 Questions With Complete Solutions
3 categories of cash flows Correct Answers 1. Operating
Activities
2. Investing Activities
3. Financing Activities
4 financial statements Correct Answers 1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows
A balance sheet would contain which of the following account
balances? Correct Answers interest payable
A business failed to make an adjusting entry at the end of the
accounting period to accrue an expense item that it had, in fact,
incurred. How did this failure affect the balance sheet at the end
of this period? Correct Answers Total liabilities are understated
A company had total assets at the end of the period of $250,
contributed capital at the end of the period of $80 and liabilities
at the end of the period of $70. What amount of retained
earnings would the company have at the end of the same period?
Correct Answers $100
A revenue that has been collected from a customer but not yet
earned, should be presented on the balance sheet as a(n): Correct
Answers liability
, Accrual Basis Accounting Correct Answers Reporting income
when it is earned and expenses when they are incurred
ACCRUAL Correct Answers Recognition of events before
exchanging cash
balance sheet Correct Answers A financial statement that
reports assets, liabilities, and owner's equity on a specific date.
Basic Accounting Equation Correct Answers Assets =
Liabilities + Owner's Equity
Cash Basis Accounting Correct Answers Reporting income
when the cash is received and expenses when the cash is paid.
Contributed capital is part of a company's: Correct Answers
owners equity
Credit accounts Correct Answers Liabilities, Owner's Equity,
Revenue
Debit accounts Correct Answers assets, expenses, dividends
DEFERRAL Correct Answers Cash exchanged before
recognition of event
Depreciation and Amortization Correct Answers The expensing
of long-term assets over time to show their declining value
3 categories of cash flows Correct Answers 1. Operating
Activities
2. Investing Activities
3. Financing Activities
4 financial statements Correct Answers 1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows
A balance sheet would contain which of the following account
balances? Correct Answers interest payable
A business failed to make an adjusting entry at the end of the
accounting period to accrue an expense item that it had, in fact,
incurred. How did this failure affect the balance sheet at the end
of this period? Correct Answers Total liabilities are understated
A company had total assets at the end of the period of $250,
contributed capital at the end of the period of $80 and liabilities
at the end of the period of $70. What amount of retained
earnings would the company have at the end of the same period?
Correct Answers $100
A revenue that has been collected from a customer but not yet
earned, should be presented on the balance sheet as a(n): Correct
Answers liability
, Accrual Basis Accounting Correct Answers Reporting income
when it is earned and expenses when they are incurred
ACCRUAL Correct Answers Recognition of events before
exchanging cash
balance sheet Correct Answers A financial statement that
reports assets, liabilities, and owner's equity on a specific date.
Basic Accounting Equation Correct Answers Assets =
Liabilities + Owner's Equity
Cash Basis Accounting Correct Answers Reporting income
when the cash is received and expenses when the cash is paid.
Contributed capital is part of a company's: Correct Answers
owners equity
Credit accounts Correct Answers Liabilities, Owner's Equity,
Revenue
Debit accounts Correct Answers assets, expenses, dividends
DEFERRAL Correct Answers Cash exchanged before
recognition of event
Depreciation and Amortization Correct Answers The expensing
of long-term assets over time to show their declining value
