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ACTG 210 Exam Questions With Correct
Answers 100% Verified.
Accounting - Answer✔The process of keeping the financial score for the entity
Revenue Recognition Principle - Answer✔EARNED: rendered goods and services RECOGNIZED:
expectation of payment
Matching Principle - Answer✔Matches expenses with revenue in the period they occur
Materiality Principle - Answer✔If you knew the fact, it could change your mind; 5% of
something
Assets - Answer✔Something of future economic value. Not all are shown on the balance sheet
because they must be objectively quantifiable to be recorded on the balance sheet
Liability - Answer✔Something owed. Not all liabilities are on the balance sheet because they
must be objectively quantifiable.
Contingent liability - Answer✔Liability that cannot be objectively quantifiable
Stockholder's Equity - Answer✔Capital + Retained Earnings
Capital - Answer✔Investment by the stockholders
Retained Earnings - Answer✔Earnings retained in the business
Ending RE = - Answer✔beginning RE + NIAT - Dividends
Dividend - Answer✔distribution of retained earnings to stockholders
Expense - Answer✔expired asset
Revenue - Answer✔Rendered goods and services with the expectation of payment
Chart of Accounts - Answer✔Index: list of names and account numbers for ALL accounts
General Journal - Answer✔"Book of Original Entry": shows the debits and credits for EACH
accounting transaction
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
General Ledger - Answer✔list of all transactions for the accounting period SORTED by account
number
Debit - Answer✔entry on the left side of a general ledger account
Credit - Answer✔entry on the right side of a general ledger account
Trial balance - Answer✔list of all accounts showing that the total debits = total credits
Adjusting entry - Answer✔reconciles a general ledger account to a backup schedule
Closing entries - Answer✔at the end of period, all revenue and expense accounts closed to RE
Reversing entries - Answer✔Reversing an accrual entry from a previous period
Contra account - Answer✔account used to keep the balance in another account visible
"Close the books" - Answer✔At the end of the period, close (move) all the revenue and expense
account balances on the income statement to RE; resets the income statement to zero to begin
the next period
Accrual basis - Answer✔accounting based on transactions
cash basis - Answer✔accounting based on cash in/cash out (i.e. Real world)
GAAP - Answer✔Generally Accepted Accounting Principles
Controller - Answer✔typically the top accounting person in a company
Income Statement - Answer✔MATCHES revenue with expense OVER a period of time
SG&A - Answer✔in income statement; Selling, General and Administrative expense
Cost of Goods Sold - Answer✔in income statement; cost of what is not there; REbeg + Net
purchases - End. inventory
Non-cash Charges - Answer✔in income statement; deduction on income statement, but no
cash paid out (depreciation, amortization, depletion, gain or loss on asset sale)
Gross Profit - Answer✔in income statement; Net Rev - CoGS
Operation income - Answer✔Gross profit - SG&A; income from the core business
Balance Sheet - Answer✔shows assets = liabilities + S.Equity AT a point in time
Current - Answer✔within 12 months of one operating cycle
Current Assets - Answer✔Assets that will be used up or converted within one year
Current Liabilities - Answer✔liabilities that are due within one year
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ACTG 210 Exam Questions With Correct
Answers 100% Verified.
Accounting - Answer✔The process of keeping the financial score for the entity
Revenue Recognition Principle - Answer✔EARNED: rendered goods and services RECOGNIZED:
expectation of payment
Matching Principle - Answer✔Matches expenses with revenue in the period they occur
Materiality Principle - Answer✔If you knew the fact, it could change your mind; 5% of
something
Assets - Answer✔Something of future economic value. Not all are shown on the balance sheet
because they must be objectively quantifiable to be recorded on the balance sheet
Liability - Answer✔Something owed. Not all liabilities are on the balance sheet because they
must be objectively quantifiable.
Contingent liability - Answer✔Liability that cannot be objectively quantifiable
Stockholder's Equity - Answer✔Capital + Retained Earnings
Capital - Answer✔Investment by the stockholders
Retained Earnings - Answer✔Earnings retained in the business
Ending RE = - Answer✔beginning RE + NIAT - Dividends
Dividend - Answer✔distribution of retained earnings to stockholders
Expense - Answer✔expired asset
Revenue - Answer✔Rendered goods and services with the expectation of payment
Chart of Accounts - Answer✔Index: list of names and account numbers for ALL accounts
General Journal - Answer✔"Book of Original Entry": shows the debits and credits for EACH
accounting transaction
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
General Ledger - Answer✔list of all transactions for the accounting period SORTED by account
number
Debit - Answer✔entry on the left side of a general ledger account
Credit - Answer✔entry on the right side of a general ledger account
Trial balance - Answer✔list of all accounts showing that the total debits = total credits
Adjusting entry - Answer✔reconciles a general ledger account to a backup schedule
Closing entries - Answer✔at the end of period, all revenue and expense accounts closed to RE
Reversing entries - Answer✔Reversing an accrual entry from a previous period
Contra account - Answer✔account used to keep the balance in another account visible
"Close the books" - Answer✔At the end of the period, close (move) all the revenue and expense
account balances on the income statement to RE; resets the income statement to zero to begin
the next period
Accrual basis - Answer✔accounting based on transactions
cash basis - Answer✔accounting based on cash in/cash out (i.e. Real world)
GAAP - Answer✔Generally Accepted Accounting Principles
Controller - Answer✔typically the top accounting person in a company
Income Statement - Answer✔MATCHES revenue with expense OVER a period of time
SG&A - Answer✔in income statement; Selling, General and Administrative expense
Cost of Goods Sold - Answer✔in income statement; cost of what is not there; REbeg + Net
purchases - End. inventory
Non-cash Charges - Answer✔in income statement; deduction on income statement, but no
cash paid out (depreciation, amortization, depletion, gain or loss on asset sale)
Gross Profit - Answer✔in income statement; Net Rev - CoGS
Operation income - Answer✔Gross profit - SG&A; income from the core business
Balance Sheet - Answer✔shows assets = liabilities + S.Equity AT a point in time
Current - Answer✔within 12 months of one operating cycle
Current Assets - Answer✔Assets that will be used up or converted within one year
Current Liabilities - Answer✔liabilities that are due within one year
2|Page
