Acct 201A CSUF First Midterm Questions

Acct 201A CSUF First Midterm
Questions
Income Statement - Answer Revenues-Expenses=Net Income/Loss

Loss if Expenses>Revenues

Income if Revenues>Expenses



Retained Earnings Statement - Answer Net Income-Dividends=Retained Earnings



Basic Accounting Equation - Answer Assets=Liabilities+Stockholder's Equity

Goes on Balance Sheet



Stockholder's Equity - Answer Common Stock+Dividends



Order of Liquidity of Current Assets - Answer 1. Cash

2. Short-term Investments

3. Accounts Receivable

4. Inventory

5. Prepaid Expenses



Debit/Credit System - Answer Left and Right Side of account



Liabilities Effect on Debit/Credit - Answer Debit Down/Credit Up



Assets Effect on Debit/Credit - Answer Debit Up/Credit Down



Equity Effect on Debit Credit - Answer Debit Down/Credit Up



Expenses/Revenues effect on Debit/Credit - Answer Expenses go up in debit/revenue goes up
in credit