ACCT 2101- TEST 1 UGA questions with |\ |\ |\ |\ |\ |\ |\
answers
Assets - CORRECT ANSWERS ✔✔something that the entity
|\ |\ |\ |\ |\ |\ |\
owns that create a future benefit... land, inventory,
|\ |\ |\ |\ |\ |\ |\ |\ |\
construction, are all examples of situations where in the |\ |\ |\ |\ |\ |\ |\ |\ |\
future they are beneficial. So its an asset
|\ |\ |\ |\ |\ |\ |\
Liability - CORRECT ANSWERS ✔✔Claims against an entity
|\ |\ |\ |\ |\ |\ |\
from an outsider asking for cash or assets... examples
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
would be deferred payments, payables, discontinued
|\ |\ |\ |\ |\ |\
liability/ operation |\
Rewriting the equation - CORRECT ANSWERS ✔✔A= L + |\ |\ |\ |\ |\ |\ |\ |\ |\
SE |\
For the creditors (peps you owe):
|\ |\ |\ |\ |\ |\
L= A- SE
|\ |\ |\
Owners of the entity: |\ |\ |\ |\
SE= A- L |\ |\
, Stockholdes Equity - CORRECT ANSWERS ✔✔This is what |\ |\ |\ |\ |\ |\ |\ |\
is the owners claims on the assets... This is broken down
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
further (see graphic in the pptx)
|\ |\ |\ |\ |\
What are revenues? - CORRECT ANSWERS ✔✔Up in assets
|\ |\ |\ |\ |\ |\ |\ |\
from operation activities
|\ |\ |\
What are expenses? - CORRECT ANSWERS ✔✔Down in
|\ |\ |\ |\ |\ |\ |\ |\
assets. Net assets that were sacrificed to obtain revenues
|\ |\ |\ |\ |\ |\ |\ |\
All Assets, Liabilities, and Stockholder Equity is broken
|\ |\ |\ |\ |\ |\ |\ |\
down into current and non- current; except for SE, which
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
is broken down between contributed capitol (an
|\ |\ |\ |\ |\ |\ |\
investment) and retained earnings - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\
✔✔
The next part is on transaction analysis - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔ |\
A transaction that says... "Issue common stock to owners
|\ |\ |\ |\ |\ |\ |\ |\ |\
for 40,000" - CORRECT ANSWERS ✔✔This is an increase in
|\ |\ |\ |\ |\ |\ |\ |\ |\
cash, so an asset... to make this balance this also goes
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
into common which is under SE
|\ |\ |\ |\ |\
answers
Assets - CORRECT ANSWERS ✔✔something that the entity
|\ |\ |\ |\ |\ |\ |\
owns that create a future benefit... land, inventory,
|\ |\ |\ |\ |\ |\ |\ |\ |\
construction, are all examples of situations where in the |\ |\ |\ |\ |\ |\ |\ |\ |\
future they are beneficial. So its an asset
|\ |\ |\ |\ |\ |\ |\
Liability - CORRECT ANSWERS ✔✔Claims against an entity
|\ |\ |\ |\ |\ |\ |\
from an outsider asking for cash or assets... examples
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
would be deferred payments, payables, discontinued
|\ |\ |\ |\ |\ |\
liability/ operation |\
Rewriting the equation - CORRECT ANSWERS ✔✔A= L + |\ |\ |\ |\ |\ |\ |\ |\ |\
SE |\
For the creditors (peps you owe):
|\ |\ |\ |\ |\ |\
L= A- SE
|\ |\ |\
Owners of the entity: |\ |\ |\ |\
SE= A- L |\ |\
, Stockholdes Equity - CORRECT ANSWERS ✔✔This is what |\ |\ |\ |\ |\ |\ |\ |\
is the owners claims on the assets... This is broken down
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
further (see graphic in the pptx)
|\ |\ |\ |\ |\
What are revenues? - CORRECT ANSWERS ✔✔Up in assets
|\ |\ |\ |\ |\ |\ |\ |\
from operation activities
|\ |\ |\
What are expenses? - CORRECT ANSWERS ✔✔Down in
|\ |\ |\ |\ |\ |\ |\ |\
assets. Net assets that were sacrificed to obtain revenues
|\ |\ |\ |\ |\ |\ |\ |\
All Assets, Liabilities, and Stockholder Equity is broken
|\ |\ |\ |\ |\ |\ |\ |\
down into current and non- current; except for SE, which
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
is broken down between contributed capitol (an
|\ |\ |\ |\ |\ |\ |\
investment) and retained earnings - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\
✔✔
The next part is on transaction analysis - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔ |\
A transaction that says... "Issue common stock to owners
|\ |\ |\ |\ |\ |\ |\ |\ |\
for 40,000" - CORRECT ANSWERS ✔✔This is an increase in
|\ |\ |\ |\ |\ |\ |\ |\ |\
cash, so an asset... to make this balance this also goes
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
into common which is under SE
|\ |\ |\ |\ |\
