PACE EXAM QUESTIONS WITH
VERIFIED ANSWERS
what are assests - ANSWERSresources controlled by company
basic elements of balance sheet - ANSWERSassests
liabilities
stockholder equity
sole proprietorship - ANSWERS1 person owning company
partnership - ANSWERS2 or more owners
corporation - ANSWERSseparate entityfrom legeal and accounting perspective
accounting equation - ANSWERSA=L+SE
how are debits and credits displayed - ANSWERSDR on left and CR on right
expenses - ANSWERSall cost of doing business that are necessary to earn revenue
purpose of retained earnings - ANSWERSreports the way net income and distribution of
dividends affect financial position
retained earning formula - ANSWERSbeg RE + NI - DIVIDENDS=end RE
headings of financial statements contain - ANSWERSCOMPANY NAME
TYPE OF STATEMENT
DATE
cash flows - ANSWERSFinancing
Investing
Opertating
operating - ANSWERSrunning the business; short term asset
change asset and liabilities
investing - ANSWERSbuying and selling resources; long term asset
financing - ANSWERSborrowing from banks ; long term liability; stocks and bonds
dividends - ANSWERSdistribution of earnings
, revenue - ANSWERSselling goods or services to customers
internal controls purposes - ANSWERSmethods company use to protect against
THEFT, enhance RELIABILITY, promote EFFICIENCY, ensure COMPLIANCE WITH
LAWS
separation of duties - ANSWERSeach person assigned to specific job
internal controls - ANSWERSensure accuracy in accounting reports
interest formula - ANSWERS(P*R*T) principal, rate, time
current assests - ANSWERSassests the busniess will use up or turn into cash within 12
months
current liability - ANSWERSdebts and other obligations that will be paid or fulfilled within
12 months
matching principle - ANSWERScost of employee wages is recorded in the same period
that the employees work to generate revenue for the company
adjusting entries are made to... - ANSWERSretained revenue and expenses that have
not been recorded but belong in current period
accured expense - ANSWERSexpense have been incurred but not paid
accured revenue - ANSWERSrevenue that been earned but not collected
permanent accounts - ANSWERSbalance sheet accounts (A, L, SE)
not closed at end of each period
temporary accounts - ANSWERSincome statement accounts (Revenues, Expenses,
Dividends Declared)
are closed at end of each period
general ledger - ANSWERSsummarizes effects of journal entries on each account
general journal - ANSWERSto record the effects of each days transactions
service company - ANSWERSsell services
retail company - ANSWERSsell directly to individual customers
manufacturer - ANSWERSsells goods that it has made itself
merchandiser - ANSWERSsells goods that have been obtained from a supplier
VERIFIED ANSWERS
what are assests - ANSWERSresources controlled by company
basic elements of balance sheet - ANSWERSassests
liabilities
stockholder equity
sole proprietorship - ANSWERS1 person owning company
partnership - ANSWERS2 or more owners
corporation - ANSWERSseparate entityfrom legeal and accounting perspective
accounting equation - ANSWERSA=L+SE
how are debits and credits displayed - ANSWERSDR on left and CR on right
expenses - ANSWERSall cost of doing business that are necessary to earn revenue
purpose of retained earnings - ANSWERSreports the way net income and distribution of
dividends affect financial position
retained earning formula - ANSWERSbeg RE + NI - DIVIDENDS=end RE
headings of financial statements contain - ANSWERSCOMPANY NAME
TYPE OF STATEMENT
DATE
cash flows - ANSWERSFinancing
Investing
Opertating
operating - ANSWERSrunning the business; short term asset
change asset and liabilities
investing - ANSWERSbuying and selling resources; long term asset
financing - ANSWERSborrowing from banks ; long term liability; stocks and bonds
dividends - ANSWERSdistribution of earnings
, revenue - ANSWERSselling goods or services to customers
internal controls purposes - ANSWERSmethods company use to protect against
THEFT, enhance RELIABILITY, promote EFFICIENCY, ensure COMPLIANCE WITH
LAWS
separation of duties - ANSWERSeach person assigned to specific job
internal controls - ANSWERSensure accuracy in accounting reports
interest formula - ANSWERS(P*R*T) principal, rate, time
current assests - ANSWERSassests the busniess will use up or turn into cash within 12
months
current liability - ANSWERSdebts and other obligations that will be paid or fulfilled within
12 months
matching principle - ANSWERScost of employee wages is recorded in the same period
that the employees work to generate revenue for the company
adjusting entries are made to... - ANSWERSretained revenue and expenses that have
not been recorded but belong in current period
accured expense - ANSWERSexpense have been incurred but not paid
accured revenue - ANSWERSrevenue that been earned but not collected
permanent accounts - ANSWERSbalance sheet accounts (A, L, SE)
not closed at end of each period
temporary accounts - ANSWERSincome statement accounts (Revenues, Expenses,
Dividends Declared)
are closed at end of each period
general ledger - ANSWERSsummarizes effects of journal entries on each account
general journal - ANSWERSto record the effects of each days transactions
service company - ANSWERSsell services
retail company - ANSWERSsell directly to individual customers
manufacturer - ANSWERSsells goods that it has made itself
merchandiser - ANSWERSsells goods that have been obtained from a supplier
