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Questions and Answers
The [BLANK] is defined as the financial statement that presents the financial position of the company on a particular date.
The [BLANK] is defined as the financial statement that presents the financial position of the company on a particular date.
- Balance Sheet (correct)
- Statement of Stockholders' Equity
- Income Statement
- Statement of Cash Flows
Which of the following is NOT a major category of accounts?
Which of the following is NOT a major category of accounts?
- Assets
- Income Statement (correct)
- Stockholders' Equity
- Liabilities
How many of the following accounts have a normal debit balance: Supplies, Notes Payable, Common Stock?
How many of the following accounts have a normal debit balance: Supplies, Notes Payable, Common Stock?
- 3
- None
- 1 (correct)
- 2
Based on the accounting equation, which of the following accounts will increase Liabilities?
Based on the accounting equation, which of the following accounts will increase Liabilities?
If Melanie's Lemonade Stand paid rent for the month of January on 1/5, what account is debited and what account is credited on 1/5? (Select ALL that apply)
If Melanie's Lemonade Stand paid rent for the month of January on 1/5, what account is debited and what account is credited on 1/5? (Select ALL that apply)
On 1/1, Ryann's bicycle shop bought $2,000 of inventory on account. On 2/15, Ryann's paid the amount owed for the inventory ($2,000). What account is debited and what account is credited in the journal entry required on 2/15? (Select ALL that apply)
On 1/1, Ryann's bicycle shop bought $2,000 of inventory on account. On 2/15, Ryann's paid the amount owed for the inventory ($2,000). What account is debited and what account is credited in the journal entry required on 2/15? (Select ALL that apply)
Based on the Unadjusted Trial Balance shown below, calculate the total amount of Net Income based on preparing an Income Statement.
Based on the Unadjusted Trial Balance shown below, calculate the total amount of Net Income based on preparing an Income Statement.
Based on the Trial Balance and Additional Info shown below, prepare a Statement of Stockholders' Equity. What is the ending balance in the Retained Earnings account as shown on the Statement of Stockholders' Equity you constructed?
Based on the Trial Balance and Additional Info shown below, prepare a Statement of Stockholders' Equity. What is the ending balance in the Retained Earnings account as shown on the Statement of Stockholders' Equity you constructed?
Based on the Trial Balance and Additional Info shown below, prepare a Statement of Stockholders' Equity. What is the total amount of Stockholders' Equity as shown on the Statement of Stockholders' Equity you constructed?
Based on the Trial Balance and Additional Info shown below, prepare a Statement of Stockholders' Equity. What is the total amount of Stockholders' Equity as shown on the Statement of Stockholders' Equity you constructed?
Based on the Trial Balance and Additional Info shown below, prepare a Balance Sheet. What is the amount of Stockholders' Equity shown on the Balance Sheet?
Based on the Trial Balance and Additional Info shown below, prepare a Balance Sheet. What is the amount of Stockholders' Equity shown on the Balance Sheet?
Based on the Trial Balance and Additional Info shown below, prepare a Balance Sheet. What is the amount of Total Liabilities and Stockholders' Equity shown on the Balance Sheet?
Based on the Trial Balance and Additional Info shown below, prepare a Balance Sheet. What is the amount of Total Liabilities and Stockholders' Equity shown on the Balance Sheet?
Flashcards
Accounting Equation
Accounting Equation
Equation showing that assets equal liabilities plus stockholders' equity.
Assets
Assets
Resources owned by a company that have economic value.
Liabilities
Liabilities
Amounts owed by the company to creditors.
Stockholders’ Equity
Stockholders’ Equity
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Revenues
Revenues
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Expenses
Expenses
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Income Statement
Income Statement
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Statement of Stockholders’ Equity
Statement of Stockholders’ Equity
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Balance Sheet
Balance Sheet
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General Ledger
General Ledger
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Journal
Journal
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Posting
Posting
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Trial Balance
Trial Balance
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Account
Account
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Deferred Revenue
Deferred Revenue
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Common Stock
Common Stock
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Retained Earnings
Retained Earnings
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Net Income
Net Income
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T Accounts
T Accounts
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Journal Entry
Journal Entry
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Prepaid Expenses
Prepaid Expenses
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Accounts Payable
Accounts Payable
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Notes Payable
Notes Payable
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Inventory
Inventory
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Accounts Receivable
Accounts Receivable
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Cash
Cash
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Financial Statements
Financial Statements
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GAAP
GAAP
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Study Notes
Exam 1 Study Guide (Chapters 1-2)
- Exam Structure: The exam comprises 40 multiple-choice, multiple-answer, and fill-in-the-blank questions. It focuses on definitions, accounting processes, and financial statement preparation. Refer to pages 5-8 for the format.
Exam Tips
- Accounting Equation: Write down the accounting equation on your scrap paper before starting the exam.
- T-accounts: Use T-accounts to solve problems, beginning with the original transaction where possible.
Recall and Definitions (Chapters 1-2)
- New Terms: Memorize all new terms introduced in chapters 1 and 2.
- Account Definitions: Understand each basic account including:
- Account name
- Definition
- Account major category
- Financial statement where the account appears
- Normal balance (debit or credit)
- Transaction Impact: Conceptually analyze how different business transactions affect specific accounts (e.g., a customer paying cash in advance impacts deferred revenue).
Accounting Process Overview (Chapter 1)
- Primary Functions: Accounting's primary role is measuring and communicating information.
- Accounting Equation: Define and apply the accounting equation (draw it on your exam paper).
- Financial Statements: Recall the definitions, formats, and interrelationships of the income statement, statement of stockholders' equity, and the balance sheet.
Accounting Process During the Period (Chapter 2)
- Business Transactions: Understand common business transactions and how they affect different accounts. Examples are provided in the text.
- Accounting Equation Impacts: Illustrate how transactions impact the accounting equation, with an emphasis on the impact through debits and credits on different accounts.
- Journal Entries and Posting: Understand recording journal entries and posting to the general ledger.
- Trial Balance: Constructing an unadjusted trial balance from account balances.
Additional Study Aids
- Self-Study Questions: Review the self-study questions at the end of each chapter (numbers 3-10 and 12).
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