ACCT 201: Final Exam Review\\ACCT 201
Final Exam Review 2025 – Complete Study
Guide & Key Concepts
General ledger
Contains all the accounts of an entity
Credit
Refers to the right side of the account
General journal
Used to record any type of transaction in chronological order
Debit
Asset and expense accounts normally have this type of balance
Closing entries
Transfer the balances of temporary accounts to the retained earnings account and reduces the
balances of the temporary accounts to zero
Long-term liabilities
(Noncurrent) Usually those payable beyond one year from the balance sheet date (or operating cycle
if longer)
Current liabilities
Expected to be satisfied within one year from the balance sheet date (or operating cycle if longer)
Intangible asset
Assets that have no physical substance, generally represent exclusive rights that a company can use to
generate future revenues
Current assets
Cash and other assets that are expected to become cash within one year of the balance sheet date (or
operating cycle if longer)
Property, plant, equipment
Tangible, long-lived assets used in the operations of the business
Gain
Final Exam Review 2025 – Complete Study
Guide & Key Concepts
General ledger
Contains all the accounts of an entity
Credit
Refers to the right side of the account
General journal
Used to record any type of transaction in chronological order
Debit
Asset and expense accounts normally have this type of balance
Closing entries
Transfer the balances of temporary accounts to the retained earnings account and reduces the
balances of the temporary accounts to zero
Long-term liabilities
(Noncurrent) Usually those payable beyond one year from the balance sheet date (or operating cycle
if longer)
Current liabilities
Expected to be satisfied within one year from the balance sheet date (or operating cycle if longer)
Intangible asset
Assets that have no physical substance, generally represent exclusive rights that a company can use to
generate future revenues
Current assets
Cash and other assets that are expected to become cash within one year of the balance sheet date (or
operating cycle if longer)
Property, plant, equipment
Tangible, long-lived assets used in the operations of the business
Gain
