Financial Accounting- Ch. 4-6 Exam Study Guide Question and answers correctly solved 2025/2026

Financial Accounting- Ch. 4-6 Exam
Study Guide Question and answers
correctly solved 2025/2026
Current Assets - correct answer ✔cash of any asset that can be turned into cash/ used within one year
of the balance sheet date

EX: inventory, supplies, accounts receivable



Current Liabilities - correct answer ✔amounts due within one year of balance sheet date

EX: accounts payable, salaries, taxes payable



Temporary Accounts - correct answer ✔all revenue accounts, all expense accounts, dividends, income
summary



Permanent Accounts - correct answer ✔all asset accounts (even accumulated- depreciation), all liability
accounts, common stock, retained earnings



4 Financial Statements - correct answer ✔1. Balance Sheet (Assets= Liabilities + Common Stock +
Retained Earnings)

2. Income Statement (Revenue-Expenses=Net Income/Net Loss)

3. Statement of Retained Earnings (Beginning Retained Earnings + Net Income - Dividends = Ending
Retained Earnings)

4. Statement of Cash flows (sources uses of cash)



Expanded Accounting Equation - correct answer ✔Assets = Liabilities + Common Stock + Revenues -
Expenses - Dividends



(add everything, subtract expenses, dividends from revenues)