ACCT5101 Midterm Test With
Complete Solution
Chapter 1 - Answer Accounting Concepts
Asset - Answer Probable future economic benefits
Examples of Assets - Answer Cash, accounts receivable, supplies, inventory, land,
patents
Liabilities - Answer Probable future sacrifices of economic benefits
Examples of Liabilities - Answer Payables, loans, unearned revenues
Equity - Answer Residual interest in the assets of an entity, remains after deducting
liabilities from assets (Stockholder's Equity)
Investments by Owners - Answer Increase in net assets of an entity
Transfers of value or increases in ownership interests or equity of a firm
Examples of Investments by Owners - Answer Common stock, paid-in capital
Distributions to Owners - Answer Decreases in net assets of an entity resulting from
transferring assets, rendering services, or incurring liabilities by the entity to owners
Examples of Distributions to Owners - Answer Dividends
Comprehensive Income - Answer Change in equity (net assets) of an entity during a
given period and includes all revenue and gains, expenses and losses than affect net
income or stockholder's equity
Revenues - Answer Inflows or other enhancements of assets or settlements of liabilities
during a period
Expenses - Answer Outflows or other using up of assets or incurrences of liabilities (or a
combo of both)
Gains - Answer increases in equity (net assets) from peripheral or incidental
transactions, and from all other transactions excluding revenues and investments by
owners
Losses - Answer Decreases in equity (net assets) from peripheral or incidental
transactions, and from all other transactions excluding expenses and distributions to
owners
Chapter 2 - Answer Accounting Information System
Complete Solution
Chapter 1 - Answer Accounting Concepts
Asset - Answer Probable future economic benefits
Examples of Assets - Answer Cash, accounts receivable, supplies, inventory, land,
patents
Liabilities - Answer Probable future sacrifices of economic benefits
Examples of Liabilities - Answer Payables, loans, unearned revenues
Equity - Answer Residual interest in the assets of an entity, remains after deducting
liabilities from assets (Stockholder's Equity)
Investments by Owners - Answer Increase in net assets of an entity
Transfers of value or increases in ownership interests or equity of a firm
Examples of Investments by Owners - Answer Common stock, paid-in capital
Distributions to Owners - Answer Decreases in net assets of an entity resulting from
transferring assets, rendering services, or incurring liabilities by the entity to owners
Examples of Distributions to Owners - Answer Dividends
Comprehensive Income - Answer Change in equity (net assets) of an entity during a
given period and includes all revenue and gains, expenses and losses than affect net
income or stockholder's equity
Revenues - Answer Inflows or other enhancements of assets or settlements of liabilities
during a period
Expenses - Answer Outflows or other using up of assets or incurrences of liabilities (or a
combo of both)
Gains - Answer increases in equity (net assets) from peripheral or incidental
transactions, and from all other transactions excluding revenues and investments by
owners
Losses - Answer Decreases in equity (net assets) from peripheral or incidental
transactions, and from all other transactions excluding expenses and distributions to
owners
Chapter 2 - Answer Accounting Information System
