ACCT 2101 Exam 1 questions with
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answers
liabilities - CORRECT ANSWERS ✔✔probable debts or
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obligations of the business enterprise that result from
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past transactions, which will be paid with assets or
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services
stockholders' equity - CORRECT ANSWERS ✔✔financing |\ |\ |\ |\ |\ |\
provided by the owners of a business enterprise and from
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business operations |\
operating cycle - CORRECT ANSWERS ✔✔time it takes for
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a company to pay suppliers, sell goods and services to
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customers, and collect case from customers |\ |\ |\ |\ |\
revenues - CORRECT ANSWERS ✔✔increases in assets or
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settlements of liabilities from ongoing operations |\ |\ |\ |\ |\
expenses - CORRECT ANSWERS ✔✔decreases in assets or
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increases in liabilities incurred to generate revenues
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during an accounting period
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, cash basis accounting - CORRECT ANSWERS ✔✔an overall
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method of accounting that records revenue when cash is
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received and expenses when cash is paid |\ |\ |\ |\ |\ |\
accrual basis accounting - CORRECT ANSWERS ✔✔an
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overall method of accounting that records revenue when
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earned and expenses when incurred
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revenue principle - CORRECT ANSWERS ✔✔principle that
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revenues are recognized when (1) goods or services are
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delivered, (2) there is persuasive evidence of an |\ |\ |\ |\ |\ |\ |\ |\
arrangement for customer payment, (3) the price is fixed |\ |\ |\ |\ |\ |\ |\ |\ |\
or determinable, and (4) collection is reasonably assured
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balance sheet - CORRECT ANSWERS ✔✔statement that
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reports the amount of assets, liabilities, and stockholders'
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equity of a business enterprise at a specific point in time
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income statement - CORRECT ANSWERS ✔✔statement
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that reports the revenues less the expenses of a business
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enterprise during an accounting period |\ |\ |\ |\
statement of retained earnings - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\
✔✔statement that reports the way that net income and |\ |\ |\ |\ |\ |\ |\ |\ |\
the distribution of dividends affected the financial position
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of a business enterprise during an accounting period
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answers
liabilities - CORRECT ANSWERS ✔✔probable debts or
|\ |\ |\ |\ |\ |\ |\
obligations of the business enterprise that result from
|\ |\ |\ |\ |\ |\ |\ |\
past transactions, which will be paid with assets or
|\ |\ |\ |\ |\ |\ |\ |\ |\
services
stockholders' equity - CORRECT ANSWERS ✔✔financing |\ |\ |\ |\ |\ |\
provided by the owners of a business enterprise and from
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
business operations |\
operating cycle - CORRECT ANSWERS ✔✔time it takes for
|\ |\ |\ |\ |\ |\ |\ |\ |\
a company to pay suppliers, sell goods and services to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
customers, and collect case from customers |\ |\ |\ |\ |\
revenues - CORRECT ANSWERS ✔✔increases in assets or
|\ |\ |\ |\ |\ |\ |\ |\
settlements of liabilities from ongoing operations |\ |\ |\ |\ |\
expenses - CORRECT ANSWERS ✔✔decreases in assets or
|\ |\ |\ |\ |\ |\ |\
increases in liabilities incurred to generate revenues
|\ |\ |\ |\ |\ |\ |\ |\
during an accounting period
|\ |\ |\
, cash basis accounting - CORRECT ANSWERS ✔✔an overall
|\ |\ |\ |\ |\ |\ |\
method of accounting that records revenue when cash is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
received and expenses when cash is paid |\ |\ |\ |\ |\ |\
accrual basis accounting - CORRECT ANSWERS ✔✔an
|\ |\ |\ |\ |\ |\ |\
overall method of accounting that records revenue when
|\ |\ |\ |\ |\ |\ |\ |\
earned and expenses when incurred
|\ |\ |\ |\
revenue principle - CORRECT ANSWERS ✔✔principle that
|\ |\ |\ |\ |\ |\ |\
revenues are recognized when (1) goods or services are
|\ |\ |\ |\ |\ |\ |\ |\ |\
delivered, (2) there is persuasive evidence of an |\ |\ |\ |\ |\ |\ |\ |\
arrangement for customer payment, (3) the price is fixed |\ |\ |\ |\ |\ |\ |\ |\ |\
or determinable, and (4) collection is reasonably assured
|\ |\ |\ |\ |\ |\ |\
balance sheet - CORRECT ANSWERS ✔✔statement that
|\ |\ |\ |\ |\ |\ |\
reports the amount of assets, liabilities, and stockholders'
|\ |\ |\ |\ |\ |\ |\
equity of a business enterprise at a specific point in time
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
income statement - CORRECT ANSWERS ✔✔statement
|\ |\ |\ |\ |\ |\
that reports the revenues less the expenses of a business
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
enterprise during an accounting period |\ |\ |\ |\
statement of retained earnings - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\
✔✔statement that reports the way that net income and |\ |\ |\ |\ |\ |\ |\ |\ |\
the distribution of dividends affected the financial position
|\ |\ |\ |\ |\ |\ |\
of a business enterprise during an accounting period
|\ |\ |\ |\ |\ |\ |\ |\
