ACC Final Exam Questions & Answers 2024/2025
What is the accounting equation? - ANSWERSAssets = Liabilities + Owner's Equity
Revenues will increase ___ and will increase ___ - ANSWERS-assets
-owners (stock holders) equity
Expenses paid with cash will decrease ___ and will decrease ___. ...
What is the accounting equation? - ANSWERSAssets = Liabilities + Owner's Equity
Revenues will increase ___ and will increase ___ - ANSWERS-assets
-owners (stock holders) equity
Expenses paid with cash will decrease ___ and will decrease ___. - ANSWERS-assets
-owner's (stockholders') equity.
Expenses incurred by use of credit will increase ___ and will decrease ___. - ANSWERS-liabilities
-owner's (stockholders')
equity
A bank loan will increase ___ and will increase ___. - ANSWERS-assets
-liabilities
Purchase of equipment for cash will ___ one asset and will ___ another asset - ANSWERS-increase
-decrease
The ___ ___ reflects the accounting equation. - ANSWERSbalance sheet
cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, equipment, and
goodwill... these are all examples of what account?? - ANSWERSassets
, notes or loans payable, accounts payable, salaries and wages payable, interest payable, and income taxes
payable (if the company is a regular corporation)....these are all examples of what account? -
ANSWERSliabilities
___ ___ is the amount left over after liabilities are deducted from assets - ANSWERS-Owner's equity or
stockholders' equity
this contains all of the balance sheet and income statement accounts - ANSWERSgeneral ledger
the financial statement that reports a company's revenues and expenses (& temporary accounts) and
the resulting net income. - ANSWERSincome statement
the financial statement that covers a time interval or period of time. - ANSWERSincome statement
sales - cost of goods sold = - ANSWERSgross profit
beginning finished goods inventory + net purchases (or cost of goods
manufactured) - ending finished goods inventory = - ANSWERScost of goods sold
Accounts that are closed at the end of the accounting year so that they begin
the new year with a zero balance (e.g. income statement accounts) - ANSWERSTemporary accounts
Accounts whose balances carry forward to the next accounting year (e.g.
an income statement account used to report the shortages or overages that
appear when the petty cash fund is replenished. A debit balance in this account will likely be reported
on the income statement as a miscellaneous expense - ANSWERSCASH SHORT AND OVER
revenue - expenses = - ANSWERSnet income
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