Accounting 203 UTK Final Exam Questions With Complete
Solutions
2 income statement formats Correct Answers single step and
multi-step
3 categories of operating assets Correct Answers property plant
and equipment, intangible assets, and natural resources
3 key elements of accrual accounting Correct Answers time
period assumption, revenue recognition principle, expense
recognition principle
A/R Turnover= Correct Answers Net sales/average net A/R
Accounting Correct Answers identifies, measures, records, and
communicates financial information about a company's business
activity
Accounting equation Correct Answers Assets = Liabilities +
Owner's Equity
Accounting is three things: Correct Answers recording,
summarizing, and reporting
Accounts receivable are... Correct Answers noninterest
bearing, unsecured, and short term current assets
accrual basis accounting Correct Answers revenues are
recorded when earned and expenses are matched within the
, period they help produce revenues (performance obligation
satisfied)
accrued expenses Correct Answers liabilities resulting from
expenses that have been incurred but not yet paid in cash (a/p)
Accrued liabilities Correct Answers liabilities for expenses that
have been incurred but not paid at the end of the accounting
period
accrued revenues Correct Answers revenues for services
performed but not yet received in cash or recorded (a/r)
adjusted trial balance Correct Answers updated trial balance
that reflects changes made by adjusting entries
adjusting entries Correct Answers made at end of the period to
record the completed portion of partially completed transactions
Adjusting entries will never involve... Correct Answers Cash
Aging of accounts method (BDE) Correct Answers individual
accounts are categorized by age multiplied by the portion
expected to default (estimates nrv)
All adjusting entries will... Correct Answers affect at least one
income statement account and one balance sheet account
Allowance for Doubtful accounts Correct Answers contra-asset
account containing the estimated uncollectible accounts
receivable
Solutions
2 income statement formats Correct Answers single step and
multi-step
3 categories of operating assets Correct Answers property plant
and equipment, intangible assets, and natural resources
3 key elements of accrual accounting Correct Answers time
period assumption, revenue recognition principle, expense
recognition principle
A/R Turnover= Correct Answers Net sales/average net A/R
Accounting Correct Answers identifies, measures, records, and
communicates financial information about a company's business
activity
Accounting equation Correct Answers Assets = Liabilities +
Owner's Equity
Accounting is three things: Correct Answers recording,
summarizing, and reporting
Accounts receivable are... Correct Answers noninterest
bearing, unsecured, and short term current assets
accrual basis accounting Correct Answers revenues are
recorded when earned and expenses are matched within the
, period they help produce revenues (performance obligation
satisfied)
accrued expenses Correct Answers liabilities resulting from
expenses that have been incurred but not yet paid in cash (a/p)
Accrued liabilities Correct Answers liabilities for expenses that
have been incurred but not paid at the end of the accounting
period
accrued revenues Correct Answers revenues for services
performed but not yet received in cash or recorded (a/r)
adjusted trial balance Correct Answers updated trial balance
that reflects changes made by adjusting entries
adjusting entries Correct Answers made at end of the period to
record the completed portion of partially completed transactions
Adjusting entries will never involve... Correct Answers Cash
Aging of accounts method (BDE) Correct Answers individual
accounts are categorized by age multiplied by the portion
expected to default (estimates nrv)
All adjusting entries will... Correct Answers affect at least one
income statement account and one balance sheet account
Allowance for Doubtful accounts Correct Answers contra-asset
account containing the estimated uncollectible accounts
receivable
