ACCT Exam with Questions and Answers

ACCT Exam with Questions and Answers What is the acct equation? ANSWER Assets= Liabilities + Equity What financial statement uses the same formula? ANSWER Balance Sheet What is the formula for an income statement? ANSWER Revenue - Expenses = Income or (Loss) What is an account? ANSWER The records of all the information associated with a prospective What 7 items are listed on a balance sheet and/or income statement? ANSWER Assets, Liabilities, Owners Equity, Revenue, Expenses, Drawing Define: Asset ANSWER things you own that make you money Give examples of a direct asset ANSWER Cash Accts Receivable (AR) Inventory Investments Give examples of an indirect asset: ANSWER PPE (Property, Plant, Equipment) Vehicles (not selling) Furniture Patents (intangible asset)