Accounting entrance exam practice with answers

Accounting entrance exam practice with |\ |\ |\ |\ |\




answers

Accounting Equation - CORRECT ANSWERS ✔✔Assets =
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Liabilities + Equity |\ |\




Income Statement - CORRECT ANSWERS ✔✔Revenues -
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Expenses = Net Income |\ |\ |\




Statement of Retained Earnings - CORRECT ANSWERS
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✔✔Beginning Retained Earnings + Net Income - Dividends|\ |\ |\ |\ |\ |\ |\



= Ending Retained Earnings
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DC ADE LER - CORRECT ANSWERS ✔✔Debits Credits
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D: assets, withdrawals, expenses
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C: Liabilities, equity, revenue
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Debt Ratio - CORRECT ANSWERS ✔✔total liabilities/total
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assets


Profit Margin Ratio - CORRECT ANSWERS ✔✔net
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income/net sales
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, straight line depreciation - CORRECT ANSWERS ✔✔(asset
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cost - salvage value) / useful life
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Current Ratio - CORRECT ANSWERS ✔✔current assets /
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current liabilities |\




Net Income - CORRECT ANSWERS ✔✔Revenues -
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Expenses
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Net sales - COGS = gross profit - operating expense = net
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income
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Gross Profit - CORRECT ANSWERS ✔✔net sales - cost of
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goods sold |\




Debits and credits - CORRECT ANSWERS ✔✔D: assets,
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withdrawals, expenses, dividends, *sales return and |\ |\ |\ |\ |\ |\



allowances (contra revenue) |\ |\




C: liabilities, equity, revenues, common stock,
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*accumulated depreciation (contra asset) |\ |\ |\




Retained Earnings - CORRECT ANSWERS ✔✔Contributed
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capital - dividends + revenues - expenses
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