Accounting 101 - Study guides, Class notes & Summaries

What is accounting? Know the definition. 1 correct answers the action or process of keeping financial accounts "language of business" information system Know the definitions of revenues and expenses 1 correct answers Revenue: inflows of assets resulting from the sale of goods and services; increase in retained earnings from delivering goods or services to customers or clients Expenses: outflows of assets resulting from the sales of goods and services; decrease in retained earnings th...

Accounting 101 Final Questions With Complete Solutions

3 main types of accounting correct answers financial, tax, cost/managerial purpose of financial accounting correct answers prepare &/or audit financial statements financail statements for public companies are issued with the correct answers securities and exchange commission SEC correct answers security and exchange commission financial statements for public companies are (public or private) correct answers public Old financial accounting rule: correct answers all financial statem...

What is the definition of revenues? Correct Answer-Assets received from selling goods and services What is the definition of expenses? Correct Answer-The cost associated with doing business What does the accounting equation? Correct Answer-Assets = liabilities + stockholders equity What is FASB? Correct Answer-Financial accounting standards Board, the organization primarily responsible for setting accounting principles (GAAP) What is the primary objective of financial reporting? Corr...

What is accounting? correct answers the action or process of keeping financial accounts revenues correct answers inflows of assets resulting from the sale of goods and services expenses correct answers outflow of assets resulting from the sale of goods and services internal user correct answers managerial accounting external user correct answers financial accounting who is responsible for GAAP correct answers FASB accounting equation correct answers assets = liabilities + owner...

A. Tangible assets used in the operation of a business that have a useful life of more than one accounting period 66. Plant assets are: A. Tangible assets used in the operation of a business that have a useful life of more than one accounting period. B. Current assets. C. Held for sale. D. Intangible assets used in the operations of a business that have a useful life of more than one accounting period. E. Tangible assets used in the operation of business that have a useful life of le...

Revenues Correct Answer-assets received from selling good and services Expenses Correct Answer-the cost associated with doing business Financial Accounting Standards Board (FASB) Correct Answer-The organization primarily responsible for evaluating, setting, or modifying GAAP. Accounting Equation Correct Answer-Assets = Liabilities + Equity Primary objective of financial reporting Correct Answer-Provide information for decision making Income Statement Correct Answer-A financial sta...

Asset Accounts correct answers Cash - Accounts Receivable - Note Receivable - Prepaid Accounts (or Expenses) More Assets Cash correct answers A company's cash balance Accounts Receivable correct answers Promises of Payment from customers. Accounts receivables are increased by credit sales; often phrased as sales on account or on a credit Note receivable correct answers Held by a lender; a borrower's written promise to pay the lender a specific sum of money on a specified future date. ...

What are assets recorded at? correct answers The historical/original cost because it is objective and verifiable. Left side correct answers Debit Right side correct answers Credit The 3 forms of business entities correct answers Proprietorship, Partnership, Corperation What is the definition of a revenue? correct answers inflows of resources that increase retained earnings by delivering goods or service to customers What is the definition of an expense? correct answers resource ou...