Payroll Fundamentals 2 Exam Questions with
Correct Answers
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Terms in this set (150)
The accounting equation Assets = Liabilities + Owners Equity
states:
Owner's Equity has two Owner's Equity = Contributed Capital + Retained
components: Earnings
The amount of payments in cash or assets that the
Contributed Capital
owners have made to the company
The accounting equation Assets = Liabilties + Contributed Capital + Retained
can be expanded to: Earnings
- asset accounts
The 5 different accounts - liability accounts
of a typical for-profit - revenue accounts
organization - expense accounts
- owners' equity accounts
Contains the value of items owned by the
Asset accounts
organization
Indicates the money that the organization owes to its
Liability accounts
creditors
- Cash
- Accounts receivable
Asset accounts include:
- prepaid expenses
- inventory
, - accounts payable
Liability accounts include - salaries and wages payable
- vacation pay payable
Used to record the income earned by the
Revenue accounts
organization during the accounting cycle
Costs incurred by an organization in the process of
Expense accounts
earning revenue during a designated period of time
Accounts that show the owners' or shareholders'
Equity accounts
worth or interest in the organization
Owners' equity is divided Contributed capital & retained earnings
into:
- account name
General ledger accounts - opening balance
consists of the following - reference
five elements: - debit and credit transactions
- closing balance
- A journal entry reference or number
- the date of the transaction
Each journal entry must
- the debit and credit amounts to be applied to each
contain the following
account
components:
- a total of the debit entries and of the credit entries
- a brief explanation of the transaction
Accounting system in which each transaction affects
double-entry accounting at least two accounts and has at least one debit and
one credit
A financial statement which presents the revenue,
Income Statement expenses, and net profit or loss of an organization
during a specific period of time
The main purpose of an to determine if the organization has earned a profit or
income statement incurred a loss during the period being reported
Correct Answers
Save
Terms in this set (150)
The accounting equation Assets = Liabilities + Owners Equity
states:
Owner's Equity has two Owner's Equity = Contributed Capital + Retained
components: Earnings
The amount of payments in cash or assets that the
Contributed Capital
owners have made to the company
The accounting equation Assets = Liabilties + Contributed Capital + Retained
can be expanded to: Earnings
- asset accounts
The 5 different accounts - liability accounts
of a typical for-profit - revenue accounts
organization - expense accounts
- owners' equity accounts
Contains the value of items owned by the
Asset accounts
organization
Indicates the money that the organization owes to its
Liability accounts
creditors
- Cash
- Accounts receivable
Asset accounts include:
- prepaid expenses
- inventory
, - accounts payable
Liability accounts include - salaries and wages payable
- vacation pay payable
Used to record the income earned by the
Revenue accounts
organization during the accounting cycle
Costs incurred by an organization in the process of
Expense accounts
earning revenue during a designated period of time
Accounts that show the owners' or shareholders'
Equity accounts
worth or interest in the organization
Owners' equity is divided Contributed capital & retained earnings
into:
- account name
General ledger accounts - opening balance
consists of the following - reference
five elements: - debit and credit transactions
- closing balance
- A journal entry reference or number
- the date of the transaction
Each journal entry must
- the debit and credit amounts to be applied to each
contain the following
account
components:
- a total of the debit entries and of the credit entries
- a brief explanation of the transaction
Accounting system in which each transaction affects
double-entry accounting at least two accounts and has at least one debit and
one credit
A financial statement which presents the revenue,
Income Statement expenses, and net profit or loss of an organization
during a specific period of time
The main purpose of an to determine if the organization has earned a profit or
income statement incurred a loss during the period being reported
