4 primary financial statements correct answers Income statement --> Fees Earned - Expenses = net income
RES = Uses net income, minus dividends, gives RE
Balance Sheet --> A = L + SE, uses RE, gives cash
SOCF --> Uses cash, gives net cash flow
3 forms of businesses and business organi...
ACC 101 || with 100% Error-free Answers.
4 primary financial statements correct answers Income statement --> Fees Earned - Expenses =
net income
RES = Uses net income, minus dividends, gives RE
Balance Sheet --> A = L + SE, uses RE, gives cash
SOCF --> Uses cash, gives net cash flow
3 forms of businesses and business organizations correct answers Service --> Delta
Merchandising --> Walmart
Manufacturing --> Dell
Application of the cost concept, business entity concept, and objectivity concept correct answers
Business entity --> business is viewed as an entity separate from its owners, creditors, or other
businesses
(Proprietorship ,partnership, corporation, LLC)
Cost concept --> Accounts are recorded at their cost or purchase price
Objectivity --> Amounts recorded are of objective difference
Definition of GAAP correct answers Generally accepted guidelines for financial statement prep
Accounting equation correct answers A = L + SE
Assets, liabilities, and equity definitions correct answers
Classification and normal balance (debit or credit) of accounts correct answers Debit = left
Credit = right
Assets, Expense, Dividends --> left (debit) is +
Everything else --> Left (debit) is -
Revenue recognitions and matching concepts correct answers RR = Reporting revenue when
service is provided (even if no cash has been received)
Matching = expenses are matched with revenue generated during period by expenses (even if bill
is due next month)
Know the 5 types of adjusting entries, and be able to complete the entries as well correct answers
1)
The second type of adjusting entry is unearned revenues: Unearned revenues represent . The
adjusting entry is:
The third type of adjusting entry is accrued revenues:
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