ACG 2001 Exam 1 with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Assets (1) ✔Correct Answer-debit + and credit -
Liabilities (2) ✔Correct Answer-Debit - and credit +
Capital (3) ✔Correct Answer-debit - and credit +
revenues (4) ✔Correct Answer-debit - and credit +
Expenses (5) ✔Correct Answer-debit + and credit -
Balance Sheet ✔Correct Answer-Assets = Liabilities + capital
Income Statement ✔Correct Answer-Revenues - Expenses = Net Income
Accounting (definition) ✔Correct Answer-process of recording, classifying, summarizing &
reporting business transactions, and interpreting their effects on the business entity
Financial Accounting (definition) ✔Correct Answer-preparation of financial statements using
GAAP (generally accepter accounting principles) Established by FASB (financial accounting
standards Board)
Business entity organization ✔Correct Answer-Sole Proprietorship, Partnership and
Corporation.
Three Basic Financial Statements (in order) ✔Correct Answer-Income statement, statement of
owner's equity, balance sheet
Income Statement (definition) ✔Correct Answer-Report that matches revenues against
expenses to show net profit or net loss. Prepared to cover a period of time. Accrual basis
accounting is based on the matching principle
Revenues (definition) ✔Correct Answer-price of goods sold and services rendered. They are
recorded when earned when using the accrual basis
Expenses (definition) ✔Correct Answer-cost of goods and services used up in the process of
obtaining revenues, also includes expired costs. Expenses are recorded when incurred
Statement of Owner's Equity ✔Correct Answer-Reports changes in Owner's Equity over a
period of time. Same period as the income statement
Answers |Latest Version |Already Graded A+
Assets (1) ✔Correct Answer-debit + and credit -
Liabilities (2) ✔Correct Answer-Debit - and credit +
Capital (3) ✔Correct Answer-debit - and credit +
revenues (4) ✔Correct Answer-debit - and credit +
Expenses (5) ✔Correct Answer-debit + and credit -
Balance Sheet ✔Correct Answer-Assets = Liabilities + capital
Income Statement ✔Correct Answer-Revenues - Expenses = Net Income
Accounting (definition) ✔Correct Answer-process of recording, classifying, summarizing &
reporting business transactions, and interpreting their effects on the business entity
Financial Accounting (definition) ✔Correct Answer-preparation of financial statements using
GAAP (generally accepter accounting principles) Established by FASB (financial accounting
standards Board)
Business entity organization ✔Correct Answer-Sole Proprietorship, Partnership and
Corporation.
Three Basic Financial Statements (in order) ✔Correct Answer-Income statement, statement of
owner's equity, balance sheet
Income Statement (definition) ✔Correct Answer-Report that matches revenues against
expenses to show net profit or net loss. Prepared to cover a period of time. Accrual basis
accounting is based on the matching principle
Revenues (definition) ✔Correct Answer-price of goods sold and services rendered. They are
recorded when earned when using the accrual basis
Expenses (definition) ✔Correct Answer-cost of goods and services used up in the process of
obtaining revenues, also includes expired costs. Expenses are recorded when incurred
Statement of Owner's Equity ✔Correct Answer-Reports changes in Owner's Equity over a
period of time. Same period as the income statement
