ACCT 2102 Farmer Test 1 Questions and Answers | Latest Update | 2024/2025 | 100% Verified
6 views 0 purchase
Course
ACCT 2102 Farmer
Institution
ACCT 2102 Farmer
ACCT 2102 Farmer Test 1 Questions and
Answers | Latest Update | 2024/2025 |
100% Verified
What is the function of a ledger in accounting?
A ledger is a book or digital record that contains all the accounts for a company, tracking all
financial transactions in detail.
Explain the term "...
ACCT 2102 Farmer Test 1 Questions and
Answers | Latest Update | 2024/2025 |
100% Verified
What is the function of a ledger in accounting?
✔✔ A ledger is a book or digital record that contains all the accounts for a company, tracking all
financial transactions in detail.
Explain the term "journal entry" in accounting.
✔✔ A journal entry is a record of a transaction that includes the date, accounts affected, amounts
debited and credited, and a brief description.
What is meant by "variable costs"?
✔✔ Variable costs are expenses that change directly with the level of production or sales
volume, such as materials and labor.
Define "working capital ratio."
✔✔ The working capital ratio is a financial metric that compares current assets to current
liabilities, assessing a company’s short-term liquidity.
1
, What does "financial statement analysis" involve?
✔✔ Financial statement analysis involves evaluating a company's financial statements to
understand its performance, trends, and financial health.
What is a "material weakness" in internal controls?
✔✔ A material weakness is a deficiency in internal controls that creates a reasonable possibility
that a material misstatement in financial statements will not be prevented or detected.
Explain "overhead costs."
✔✔ Overhead costs are ongoing expenses associated with operating a business that cannot be
directly attributed to a specific product or service, such as rent and utilities.
What is the purpose of an end-of-period adjustment?
✔✔ An end-of-period adjustment ensures that all revenues and expenses are accurately recorded
in the correct accounting period for financial reporting.
Define "bank statement."
✔✔ A bank statement is a summary of all transactions that have occurred in a bank account over
a specific period, detailing deposits, withdrawals, and ending balances.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SterlingScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.74. You're not tied to anything after your purchase.
