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Accounting Final Exam Review Questions with Correct Answers
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Accounting Final Exam Review Questions with Correct Answers
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Accounting Final Exam ReviewQuestions with Correct Answers
accounting - Answer-planning, recording, analyzing, and interpreting financial
information.
accounting equation - Answer-an equation showing the relationship among assets,
liabilities, and owner's equity.
accounts payable ledger - Answer-a subsidiary ledger containing only account for
vendors from whom merchandise or other items are purchase on account
accumulated depreciation - Answer-the total amount of depreciation expense that has
been recorded since the purchase of a plant asset.
Adjusting entries - Answer-journal entries recorded to update general ledger accounts at
the end of a fiscal period
asset - Answer-anything of value that is owned.
Balance Sheet - Answer-a financial statement that reports assets, liabilities, and owner's
equity on a specific date.
Bank Statement - Answer-A report of deposits, withdrawals, and bank balances sent to
a depositor by bank
board of directors - Answer-a group of persons elected by the stockholders to manage a
corporation
business ethics - Answer-the use of ethics in making business decisions.
Capital stock - Answer-total shares of ownership in a corporation.
cash payments journal- - Answer-a special journal used to record only cash (check)
payment transactions
chart of accounts - Answer-a list of accounts used by businesses
Check - Answer-A business form ordering a bank to pay cash from a bank account
Corporation - Answer-an organization with the legal rightsof a person and which many
persons may own
Credit - Answer-An amount recorded on the right side
, Credit Card Sale - Answer-A sale in which a credit card used for the total amount of the
sale at the time of the transaction.
Current Liabilities - Answer-Liabilities due within a short time, usually within a year
Currents Assets - Answer-cash and other assets expected to be exchanged for cash or
consumed within a year
Customer - Answer-A person/business to whom merchandise/services are sold.
Debit - Answer-An amount recorded on the left side
declaring a dividend - Answer-action by a board of directors to distribute corporate
earnings to stockholders
depreciation expense - Answer-the portion of a plant asset's cost that is transferred to
an expense accounts in each fiscal period during a plant assets useful life.
dividends - Answer-earnings distributed to stockholders
double-entry accounting - Answer-The recording of debit and credit parts of a
transaction
ethics - Answer-the principles of right and wrong that guide an individual in making
decisions.
expense - Answer-a decrease in owner's equity resulting from the operation of a
business.
financial statements - Answer-financial reports that summarize the financial condition
and operations of a business.
Fiscal Period - Answer-the length for time for which a business summarizes and reports
financial information
general journal - Answer-A journal with two amount columns in which all kinds of entries
can be recorded
General Ledger - Answer-A ledger that contains all accounts needed to prepare
financial statements
Income Statement - Answer-a financial statement showing the revenue and expenses
for a fiscal period.
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