DETAILED ANSWERS|LATEST
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
What are the 5 Account Types? - ANSWER - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ANSWER Assets = Liabilities + Equity + Revenue -
Expenses
What does DEA/LER stand for? - ANSWER - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 6 steps of the Accounting-Cycle? - ANSWER - Collect and Analyze
Transactions
- Record/Post transactions to the ledger
- Prepare and unadjusted trial balance
- Prepare adjusting entries at the end of the period
1
, - Prepare an adjusted trial balance
- Prepare financial statements
What are the 4 Types of financial statements? - ANSWER - The income statement
- The balance sheet
- The statement of equity
- The statement of cash flow
What are the 4 types of accounting adjustments? - ANSWER - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - ANSWER - Handle bank feeds and reconciles
bank accounts, managing accounts receivable/payable, and record financial transactions
Mary Smith is the owner and operator of Smith Construction. At the end of the company's
accounting period, December 31, 2020, Smith Construction has assets totaling $760,000 and
liabilities totaling $240,000.
Use the accounting equation to calculate what Mary's Owner Equity would be as of
December 31, 2020. - ANSWER - $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At the end of 2019, the
company's assets totaled $500,000 and its liabilities totaled $175,000. Assuming that over
the 2020 fiscal year, assets increased by $120,000 and liabilities increased by $72,000, use
the accounting equation to determine what Mike's Owner's equity will be as of December
31, 2020? - ANSWER - $373,000
2
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
What are the 5 Account Types? - ANSWER - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ANSWER Assets = Liabilities + Equity + Revenue -
Expenses
What does DEA/LER stand for? - ANSWER - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 6 steps of the Accounting-Cycle? - ANSWER - Collect and Analyze
Transactions
- Record/Post transactions to the ledger
- Prepare and unadjusted trial balance
- Prepare adjusting entries at the end of the period
1
, - Prepare an adjusted trial balance
- Prepare financial statements
What are the 4 Types of financial statements? - ANSWER - The income statement
- The balance sheet
- The statement of equity
- The statement of cash flow
What are the 4 types of accounting adjustments? - ANSWER - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - ANSWER - Handle bank feeds and reconciles
bank accounts, managing accounts receivable/payable, and record financial transactions
Mary Smith is the owner and operator of Smith Construction. At the end of the company's
accounting period, December 31, 2020, Smith Construction has assets totaling $760,000 and
liabilities totaling $240,000.
Use the accounting equation to calculate what Mary's Owner Equity would be as of
December 31, 2020. - ANSWER - $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At the end of 2019, the
company's assets totaled $500,000 and its liabilities totaled $175,000. Assuming that over
the 2020 fiscal year, assets increased by $120,000 and liabilities increased by $72,000, use
the accounting equation to determine what Mike's Owner's equity will be as of December
31, 2020? - ANSWER - $373,000
2
