Accounting Exam 1 Study Guide (Chapters 1-2)

<p>Notes Payable (C), Accounts Payable (D)</p> Signup and view all the answers

<p>Common Stock (C)</p> Signup and view all the answers

<p>Balance Sheet (C)</p> Signup and view all the answers

<p>Creditors' and owner's claims to those resources (liabilities and stockholders' equity) (A)</p> Signup and view all the answers

<p>Expenses (D)</p> Signup and view all the answers

<p>A summary of the effects of all transactions related to a particular item over a period of time (B)</p> Signup and view all the answers

<p>Balance Sheet (A)</p> Signup and view all the answers

<p>The amounts earned from selling products or services to customers (D)</p> Signup and view all the answers

<p>To measure and report on the financial position of a company (C)</p> Signup and view all the answers

<p>Inventory (D)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>posting</p> Signup and view all the answers

<p>Statement of Stockholders' Equity</p> Signup and view all the answers

<p>Measuring, recording, and communicating</p> Signup and view all the answers

<p>A debit increases the balance of asset, expense, and dividend accounts, while a credit increases the balance of liability, revenue, and equity accounts.</p> Signup and view all the answers

<p>To provide a comprehensive list of all the accounts used by a company to record financial transactions</p> Signup and view all the answers

<p>Income statement, balance sheet, statement of stockholders' equity, and statement of cash flows</p> Signup and view all the answers

<p>The accounting equation helps business owners and managers understand the financial health of their company, including its ability to pay bills, generate profits, and grow its assets effectively.</p> Signup and view all the answers

<p>To verify that the total debits in the general ledger equal the total credits after all accounting transactions have been recorded and posted.</p> Signup and view all the answers

<p>An unadjusted trial balance is a preliminary report that lists all accounts with their balances before any adjusting entries are made, while an adjusted trial balance includes the effects of those entries, resulting in a more accurate representation of the company's financial position.</p> Signup and view all the answers

<p>Cash = Asset Accounts Payable = Liability Common Stock = Stockholders' Equity Service Revenue = Revenue Rent Expense = Expense</p> Signup and view all the answers

<p>Cash and Supplies (B)</p> Signup and view all the answers

<p>Cash and Deferred Revenue (C)</p> Signup and view all the answers

<p>A chronological record of all transactions affecting a firm (D)</p> Signup and view all the answers

<p>To summarize all transactions related to a specific account (D)</p> Signup and view all the answers

<p>All of the above (D)</p> Signup and view all the answers

<p>It ensures that all transactions are recorded in at least two accounts (A)</p> Signup and view all the answers

<p>Accounts Receivable and Sales Revenue (A)</p> Signup and view all the answers

<p>A prepaid expense is recorded when cash is paid in advance for a service, while an accrued expense is recorded when a service is received but not yet paid for (C)</p> Signup and view all the answers

<p>To report a company's revenues and expenses over an interval of time (A)</p> Signup and view all the answers

<p>To summarize the changes in stockholders' equity over an interval of time (D)</p> Signup and view all the answers

<p>To track the flow of cash in and out of a company (B)</p> Signup and view all the answers

An equation showing assets equal liabilities plus stockholders' equity.

Generally Accepted Accounting Principles; rules of financial accounting.

Resources owned by a company.

Amounts owed to creditors.

Owners' claims to the company's resources.

Amounts earned from sales of products or services.

Costs incurred in providing products and services.

An economic event recorded in financial accounting.

Time period for which accounts are balanced and statements prepared.

A list of all account names used by a company.

Reports providing information to external users.

Financial statement showing a company's position at a specific date.

Reports company's revenues and expenses over time.

Reports cash receipts and payments over time.

Collection of accounts with individual transactions and balances.

Chronological record of all business transactions.

Process of transferring journal entries to the ledger.

List of all accounts and their balances before adjustments.

Expected balance type (debit or credit) for accounts.

The difference between revenues and expenses.

Cash payments made to stockholders.

Amounts expected to be collected from customers.

Amounts owed to suppliers or creditors.

Cash received before services or goods are provided.

Cumulative net income not paid out as dividends.

A type of exam question requiring specific answers.

Exam questions offering multiple answers to choose from.

Periodic reports that provide financial information to stakeholders.

Visual representation of account debits and credits.

Amount invested by shareholders in the business.

List of all accounts and balances before adjustments.

A record of business transactions in chronological order.

Summary of transactions related to a specific item.

Reports cash receipts and payments over a period.

Summarizes changes in equity over a period.

Payments made for expenses not yet incurred.

Process of listing all accounts and their balances.

Record revenue when earned, not when received.

Financial statements prepared according to GAAP.

Relationship between different financial statements.

Reports changes in stockholders’ equity over time.

Record revenues and expenses when they occur, not cash movements.

Owner's claim to the company's resources after liabilities.