Intuit Bookkeeping Academy - Bookkeeping Basics Exam with
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correct detailed answers
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Accounting Equation - ✔✔Assets = Liabilities + Equity || || || || || || ||
Assets - ✔✔Anything owned of value or a resource of value that has potential to be turned into
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cash - Buildings, equipment, etc.
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Liabilities - ✔✔What's owed to others - Loans, unpaid bills, etc.
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Equity - ✔✔Owners stake in the company - How much they've invested or withdrawn
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A balance sheet is... - ✔✔The accounting equation displayed as a financial statement
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T/F: A business's assets can never equal more or less than the sum of its liabilities and equity. -
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✔✔True
Revenue and expenses on an income statement summarize financial performance through
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calculation of...? - ✔✔Revenue MINUS expenses || || || || ||
Balance sheets determine... - ✔✔Net income or net loss for specified time periods
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How are negative values noted? - ✔✔In parenthesis, ($6000)
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Debits are... - ✔✔An increase in assets or expenses, or a decrease in liabilities, owner equity or
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revenue.
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correct detailed answers
|| || ||
Accounting Equation - ✔✔Assets = Liabilities + Equity || || || || || || ||
Assets - ✔✔Anything owned of value or a resource of value that has potential to be turned into
|| || || || || || || || || || || || || || || || || ||
cash - Buildings, equipment, etc.
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Liabilities - ✔✔What's owed to others - Loans, unpaid bills, etc.
|| || || || || || || || || ||
Equity - ✔✔Owners stake in the company - How much they've invested or withdrawn
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A balance sheet is... - ✔✔The accounting equation displayed as a financial statement
|| || || || || || || || || || || ||
T/F: A business's assets can never equal more or less than the sum of its liabilities and equity. -
|| || || || || || || || || || || || || || || || || || ||
✔✔True
Revenue and expenses on an income statement summarize financial performance through
|| || || || || || || || || || ||
calculation of...? - ✔✔Revenue MINUS expenses || || || || ||
Balance sheets determine... - ✔✔Net income or net loss for specified time periods
|| || || || || || || || || || || ||
How are negative values noted? - ✔✔In parenthesis, ($6000)
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Debits are... - ✔✔An increase in assets or expenses, or a decrease in liabilities, owner equity or
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revenue.
