ACCT 2401 ECU Exam 1 (East Carolina University)
with all Correct & 100% Verified Answers |Already
Graded A+
Liabilities ✔Correct Answer-accounts payable, notes payable, accrued liabilities, unearned
revenues
Unearned Revenue ✔Correct Answer-liability created when business collects cash before work is
done
Revenue increases ____ from the sales of products and services ✔Correct Answer-equity
Expenses decrease ____ from costs of providing products ✔Correct Answer-equity
Shareholders are not ✔Correct Answer-personally liable for corporate acts and debts
Revenue _____ equity ✔Correct Answer-increases
Expenses ____ equity ✔Correct Answer-decrease
Dividends _____ equity ✔Correct Answer-reduce
GAAP ✔Correct Answer-Generally Accepted Accounting Principles
GAAP aims to ✔Correct Answer-make info relevant, reliable, and comparable
Order used in preparing financial statements ✔Correct Answer-who, what, when
Income Statement ✔Correct Answer-describes company's revenues and expenses along with net
income or loss over period of time
Net Income ____ equity ✔Correct Answer-increases
Net income occurs when ✔Correct Answer-revenues exceed expenses
Statement of Retained Earnings ✔Correct Answer-reports changes in retained earnings
Balance Sheet ✔Correct Answer-describes a company's financial position (types and amounts of
assets, liabilities, and equity) at a point in time
Statements of Cash Flows ✔Correct Answer-identifies cash inflows (receipts) and cash outflows
(payments) over a period of time
Account ✔Correct Answer-a record of increases and decreases in a specific asset, liability, equity,
revenue, or expense item
Ledger ✔Correct Answer-record of all accounts used in a company
with all Correct & 100% Verified Answers |Already
Graded A+
Liabilities ✔Correct Answer-accounts payable, notes payable, accrued liabilities, unearned
revenues
Unearned Revenue ✔Correct Answer-liability created when business collects cash before work is
done
Revenue increases ____ from the sales of products and services ✔Correct Answer-equity
Expenses decrease ____ from costs of providing products ✔Correct Answer-equity
Shareholders are not ✔Correct Answer-personally liable for corporate acts and debts
Revenue _____ equity ✔Correct Answer-increases
Expenses ____ equity ✔Correct Answer-decrease
Dividends _____ equity ✔Correct Answer-reduce
GAAP ✔Correct Answer-Generally Accepted Accounting Principles
GAAP aims to ✔Correct Answer-make info relevant, reliable, and comparable
Order used in preparing financial statements ✔Correct Answer-who, what, when
Income Statement ✔Correct Answer-describes company's revenues and expenses along with net
income or loss over period of time
Net Income ____ equity ✔Correct Answer-increases
Net income occurs when ✔Correct Answer-revenues exceed expenses
Statement of Retained Earnings ✔Correct Answer-reports changes in retained earnings
Balance Sheet ✔Correct Answer-describes a company's financial position (types and amounts of
assets, liabilities, and equity) at a point in time
Statements of Cash Flows ✔Correct Answer-identifies cash inflows (receipts) and cash outflows
(payments) over a period of time
Account ✔Correct Answer-a record of increases and decreases in a specific asset, liability, equity,
revenue, or expense item
Ledger ✔Correct Answer-record of all accounts used in a company
