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UW Eau Claire Accounting 201 Final correctly answered to pass
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UW Eau Claire Accounting 201 Final correctly answered to pass
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UW Eau Claire Accounting 201 FinalThe accounting information system is... - correct answer ✔✔the system of collecting and processing
transaction data and communicating financial information to decision-makers
Accounting transactions are... - correct answer ✔✔an economic event that requires recording in the
financial statements
Transaction analysis is... - correct answer ✔✔the process of identifying the specific effects of economic
events on the accounting equation
An account is... - correct answer ✔✔an individual accounting record of increases and decreases in a
specific asset, liability, SE, revenue, or expense item
T-account - correct answer ✔✔the simplest form of an account
Debits - correct answer ✔✔assets increase, liabilities decrease
Credits - correct answer ✔✔assets decrease, liabilities increase
Double-entry accounting system - correct answer ✔✔a system where every transaction will involve 2
accounts (or more)
Dividends - correct answer ✔✔a distribution by a corporation to its stockholders
Chart of accounts - correct answer ✔✔organizational tool that provides a complete listing of every
account in an accounting system
Posting - correct answer ✔✔the procedure of transferring journal entry amounts to ledger accounts
, Assets - correct answer ✔✔the resources owned by a business
Liabilities - correct answer ✔✔the debts owed to creditors
Equity - correct answer ✔✔the capital invested in a corporation (assets-liabilities)
Revenues - correct answer ✔✔increase equity as a result of selling services or products
Expenses - correct answer ✔✔using up assets, either physically or through the passage of time, or
consuming services to generate revenue
ALICE - correct answer ✔✔Assets
Liabilities
Income
Capital
Expense
Sole proprietor - correct answer ✔✔+ owned by one person
+ tax advantages
- personally liable for debts and legal obligations
- harder to sell your company
Partnership - correct answer ✔✔+ owned by 2 or more people
+ tax advantages
+ broader skills and resources
- personally liable for debts and legal obligations
Corporation - correct answer ✔✔+ stockholders own the company
+ easier to transfer ownership
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