4/18/26, 10:45 PM Accounting 284 Exam 1 Iowa State
ACCT 215\248 -Accounting Exam 1 Iowa State EXAM || MOST
RECENT EXAM ACTUAL COMPLETE REAL EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ | GUARANTEED SUCCESS!! NEWEST EXAM | JUST
RELEASED!!
Accounting
A system that collects and processes financial information about an
organization and reports that information to decision makers.
External Decision makers
Deal with financial accounting system (focus of Accounting 284)
Balance Sheet (BS), Statement of Retained Earnings (SRE), Statement of Cash
Flows (SCF), and the Income Statement (IS)
4 Things provided by a financial accounting system
Balance Sheet
Reports the financial position of an accounting entity AT A POINT IN TIME.
Also called the "statement of financial position". Reports assets, liabilities,
and stockholders' equity.
1/34
,4/18/26, 10:45 PM Accounting 284 Exam 1 Iowa State
Assets=Liabilities+Stockholders' Equity
Balance Sheet Equation
Statement of Retained Earnings
Reports how net income and the distribution of dividends affected the
financial position of the company FOR THIS ACCOUNTING PERIOD.
Beginning RE + Net Income - Dividends = Ending RE
Retained Earnings Equation
Income Statement
Reports revenues less expenses for the accounting period. Shows net
income (aka net profit, net earnings, the bottom line). Also called
"statement of income",
"statement of earnings", and "statement of operations".
Left
Debit goes on what side of a T-account?
Right
Credit goes on what side of a T-account?
2/34
,4/18/26, 10:45 PM Accounting 284 Exam 1 Iowa State
Summarize transaction effects for each account, determine account balances,
draw inferences about a company's activities.
What are T-Accounts used for?
+,-
Types of Account Charts: Assets
-,+
Types of Account Charts: Liabilities
-,+
Types of Account Charts: Equity
-,+
Types of Account Charts: Revenues
-,+
Types of Account Charts: Expenses
+,-
Types of Account Charts: Dividends
3/34
, 4/18/26, 10:45 PM Accounting 284 Exam 1 Iowa State
Journal Entry
An accounting method for expressing the effects of a transaction on
accounts in a debit-equal-credits format.
Recorded in a journal in chronological order, debits are written first,
credits are indented below debits, total debits equal total credits (Dr=Cr)
Characteristics of a journal entry
1. Analyze events
2. Make journal entries
3. post to the ledger
4. Prepare a trial balance
5. Make adjustments
6. Prepare financial statements
7. Make closing entries
The accounting cycle (7)
Current Assets / Current Liabilities
Current Ratio Equation for assets and liabilities
Ratio Analysis Assets and Liabilities
Assesses whether current assets are sufficient to pay current liabilities and
the high ratio means better able to pay.
4/34
ACCT 215\248 -Accounting Exam 1 Iowa State EXAM || MOST
RECENT EXAM ACTUAL COMPLETE REAL EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ | GUARANTEED SUCCESS!! NEWEST EXAM | JUST
RELEASED!!
Accounting
A system that collects and processes financial information about an
organization and reports that information to decision makers.
External Decision makers
Deal with financial accounting system (focus of Accounting 284)
Balance Sheet (BS), Statement of Retained Earnings (SRE), Statement of Cash
Flows (SCF), and the Income Statement (IS)
4 Things provided by a financial accounting system
Balance Sheet
Reports the financial position of an accounting entity AT A POINT IN TIME.
Also called the "statement of financial position". Reports assets, liabilities,
and stockholders' equity.
1/34
,4/18/26, 10:45 PM Accounting 284 Exam 1 Iowa State
Assets=Liabilities+Stockholders' Equity
Balance Sheet Equation
Statement of Retained Earnings
Reports how net income and the distribution of dividends affected the
financial position of the company FOR THIS ACCOUNTING PERIOD.
Beginning RE + Net Income - Dividends = Ending RE
Retained Earnings Equation
Income Statement
Reports revenues less expenses for the accounting period. Shows net
income (aka net profit, net earnings, the bottom line). Also called
"statement of income",
"statement of earnings", and "statement of operations".
Left
Debit goes on what side of a T-account?
Right
Credit goes on what side of a T-account?
2/34
,4/18/26, 10:45 PM Accounting 284 Exam 1 Iowa State
Summarize transaction effects for each account, determine account balances,
draw inferences about a company's activities.
What are T-Accounts used for?
+,-
Types of Account Charts: Assets
-,+
Types of Account Charts: Liabilities
-,+
Types of Account Charts: Equity
-,+
Types of Account Charts: Revenues
-,+
Types of Account Charts: Expenses
+,-
Types of Account Charts: Dividends
3/34
, 4/18/26, 10:45 PM Accounting 284 Exam 1 Iowa State
Journal Entry
An accounting method for expressing the effects of a transaction on
accounts in a debit-equal-credits format.
Recorded in a journal in chronological order, debits are written first,
credits are indented below debits, total debits equal total credits (Dr=Cr)
Characteristics of a journal entry
1. Analyze events
2. Make journal entries
3. post to the ledger
4. Prepare a trial balance
5. Make adjustments
6. Prepare financial statements
7. Make closing entries
The accounting cycle (7)
Current Assets / Current Liabilities
Current Ratio Equation for assets and liabilities
Ratio Analysis Assets and Liabilities
Assesses whether current assets are sufficient to pay current liabilities and
the high ratio means better able to pay.
4/34
