accounting 2301 Final Exam Review
Questions With Correct Answers
entity assumption - CORRECT ANSWER✔✔-known as separate entity.
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Means that business is separate financial entity. separate from finances
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of the personal owner.
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the expense - CORRECT ANSWER✔✔-money spent on entity in effort to
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generate revenue |
accounting equation - CORRECT ANSWER✔✔-assets= liability +
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shareholder equity (shareholder investments +retained earnings)
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component of retained earnings - CORRECT ANSWER✔✔-1. dividends 2.
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accumulated earnings 3. current year net income after taxes
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net income - CORRECT ANSWER✔✔-1. companies total earnings/ profit
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2. individuals income after taxes
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total assets - CORRECT ANSWER✔✔-(total current assets+ long term
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assets) - (current liability + long term liability)
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, total liabilities - CORRECT ANSWER✔✔-debt and financial obligations
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owed by a business to individuals and organizations. dividends are not
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liabilities.
short term liabilities - CORRECT ANSWER✔✔-accounts payable, short
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term notes payable, Accrued expenses, Unearned revenues, Advances
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Accounts payable - CORRECT ANSWER✔✔-money that is owed to
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suppliers for goods and services
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short term notes payable - CORRECT ANSWER✔✔-financing obligations
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that you have to pay in a year, usually with interests; the term 'note'
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refers to a promissory note, which is a special type of loan agreement
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Accrued expenses - CORRECT ANSWER✔✔-expenses that you owe but
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you have yet to have received an invoice for payment
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unearned revenues - CORRECT ANSWER✔✔-revenue you have received
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but have yet to deliver the goods or perform the services to earn the
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revenue
dividends payable - CORRECT ANSWER✔✔-dividends owed to
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shareholders but not yet paid | | | |
Questions With Correct Answers
entity assumption - CORRECT ANSWER✔✔-known as separate entity.
| | | | | | | |
Means that business is separate financial entity. separate from finances
| | | | | | | | | |
of the personal owner.
| | |
the expense - CORRECT ANSWER✔✔-money spent on entity in effort to
| | | | | | | | | | |
generate revenue |
accounting equation - CORRECT ANSWER✔✔-assets= liability +
| | | | | | |
shareholder equity (shareholder investments +retained earnings)
| | | | |
component of retained earnings - CORRECT ANSWER✔✔-1. dividends 2.
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accumulated earnings 3. current year net income after taxes
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net income - CORRECT ANSWER✔✔-1. companies total earnings/ profit
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2. individuals income after taxes
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total assets - CORRECT ANSWER✔✔-(total current assets+ long term
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assets) - (current liability + long term liability)
| | | | | | |
, total liabilities - CORRECT ANSWER✔✔-debt and financial obligations
| | | | | | | |
owed by a business to individuals and organizations. dividends are not
| | | | | | | | | | |
liabilities.
short term liabilities - CORRECT ANSWER✔✔-accounts payable, short
| | | | | | | |
term notes payable, Accrued expenses, Unearned revenues, Advances
| | | | | | |
Accounts payable - CORRECT ANSWER✔✔-money that is owed to
| | | | | | | | |
suppliers for goods and services
| | | |
short term notes payable - CORRECT ANSWER✔✔-financing obligations
| | | | | | | |
that you have to pay in a year, usually with interests; the term 'note'
| | | | | | | | | | | | | |
refers to a promissory note, which is a special type of loan agreement
| | | | | | | | | | | |
Accrued expenses - CORRECT ANSWER✔✔-expenses that you owe but
| | | | | | | | |
you have yet to have received an invoice for payment
| | | | | | | | |
unearned revenues - CORRECT ANSWER✔✔-revenue you have received
| | | | | | | |
but have yet to deliver the goods or perform the services to earn the
| | | | | | | | | | | | | |
revenue
dividends payable - CORRECT ANSWER✔✔-dividends owed to
| | | | | | |
shareholders but not yet paid | | | |
