Exam (elaborations)
FINANCIAL ACCOUNTING FINAL EXAM (IVY TECH) QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
- Course
- Institution
FINANCIAL ACCOUNTING FINAL EXAM (IVY TECH) QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
[Show more]
Content preview
FINANCIAL ACCOUNTING FINAL EXAM(IVY TECH) QUESTIONS AND ANSWERS
WITH SOLUTIONS 2024
Revenues - ANSWER Gross increase in equity from a company's business activities that earn income; also
called sales.
Expenses - ANSWER Outflows or using up of assets as part of operations of a business to generate sales.
Accounts Receivable - ANSWER Amounts to be received in the future due to the sale of goods or services
Accounting Equation - ANSWER Assets = Liabilities + Equity
Income Statement - ANSWER describes a company's revenues and expenses along with the resulting net
income or loss over a period of time due to earnings activities
Accounts on Income Statement - ANSWER Revenues - Expenses
Balance Sheet - ANSWER Financial statement that lists types and dollar amounts of assets, liabilities, and
equity at a specific date.
Accounts on balance sheet - ANSWER assets, liabilities, equity
Primary Objective of Financial Reporting - ANSWER to provide information that is useful to investors and
creditors for decision making
Expanded Accounting Equation - ANSWER Assets = Liabilities + Common Stock + Revenues - Expenses -
Dividends
FASB (Financial Accounting Standards Board) - ANSWER sets accounting standards (GAAP) in the U.S.
, T account - ANSWER debit left, credit right
Normal Balance of Expenses - ANSWER Debit (decrease equity)
Normal balance of Revenues - ANSWER credit
Normal Balance of dividends - ANSWER Dr. (it decreases owner's equity)
normal balance of assets - ANSWER Debit Increases. Credit decreases. NB: Debit.
normal balance of liabilities - ANSWER credit increases, debit decreases NB:Credit
Journal - ANSWER Record in which transactions are entered before they are posted to ledger accounts;
also called book of original entry.
Journalizing - ANSWER Recording transactions in a journal
Trial Balance - ANSWER a list of accounts and their balances at a given time
Trial Balance Order of Accounts - ANSWER assets, liabilities, equity, dividends, revenue, expenses
journal entry: purchase of equipment - ANSWER debit equipment, credit cash
Accrual Basis Accounting - ANSWER reporting revenue when it is earned and expenses when they are
incurred (basis for GAAP)
salary expense adjustment - ANSWER debit salaries expense, credit salaries payable
revenues and expenses are closed to what account? - ANSWER income summary
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Performance. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
85169 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now