Accounting 203 GMU Exam 1 Questions With Complete
Solutions
3 factors of fraud triangle Correct Answers opportunity,
financial pressure, rationalization
Accounting Correct Answers The information system that
identifies, records, and communicates an organization's business
activities
accrrued liabiliites Correct Answers estimate your costs for
your expenses
Accrual Basis Accounting Correct Answers Revenues are
recorded when products or services are delivered, and records
expenses when incurred
Adjusting Journal Entry Correct Answers An end-of-period
journal entry required to bring the account balances up-to-date
before the preparation of the financial statements
adjustments for trial balance Correct Answers paid(or recieved)
cash before expense(or revenue) is recognized----->prepaids
expenses or unearned revenue
paid (or recieved) cash after expenses(or revenue)recognized
are orders financial transactions Correct Answers no, not until
delivery
Assets Correct Answers economic resources of the company
, Includes: Cash, accounts receivable investments, prepaid assets,
inventory, land, equipment, buildings
*HAS A NATURAL DEBT BALANCE
Debts: up
Credits: down
Balance Sheets Correct Answers specific day and Time,
describes company situation financially
business entiity assumption Correct Answers business is
accounted separately from other business entities
Cash Basis Accounting Correct Answers revenues are recorded
when cash is received and expenses are recorded when cash is
paid
classified liabilities Correct Answers subtotal of current
liabilities
closing accounts Correct Answers 1) print unjusted trail
balance
2)post adjusting entries
3)adjusted trial balance
4)closing entry
5)final trial balance, post closing
Common Stock Correct Answers Down: Debts
Solutions
3 factors of fraud triangle Correct Answers opportunity,
financial pressure, rationalization
Accounting Correct Answers The information system that
identifies, records, and communicates an organization's business
activities
accrrued liabiliites Correct Answers estimate your costs for
your expenses
Accrual Basis Accounting Correct Answers Revenues are
recorded when products or services are delivered, and records
expenses when incurred
Adjusting Journal Entry Correct Answers An end-of-period
journal entry required to bring the account balances up-to-date
before the preparation of the financial statements
adjustments for trial balance Correct Answers paid(or recieved)
cash before expense(or revenue) is recognized----->prepaids
expenses or unearned revenue
paid (or recieved) cash after expenses(or revenue)recognized
are orders financial transactions Correct Answers no, not until
delivery
Assets Correct Answers economic resources of the company
, Includes: Cash, accounts receivable investments, prepaid assets,
inventory, land, equipment, buildings
*HAS A NATURAL DEBT BALANCE
Debts: up
Credits: down
Balance Sheets Correct Answers specific day and Time,
describes company situation financially
business entiity assumption Correct Answers business is
accounted separately from other business entities
Cash Basis Accounting Correct Answers revenues are recorded
when cash is received and expenses are recorded when cash is
paid
classified liabilities Correct Answers subtotal of current
liabilities
closing accounts Correct Answers 1) print unjusted trail
balance
2)post adjusting entries
3)adjusted trial balance
4)closing entry
5)final trial balance, post closing
Common Stock Correct Answers Down: Debts
