ACCT 2101 FINAL EXAM STUDY GUIDE
COMPLETE QUESTIONS WITH VERIFIED
ANSWERS
\.Retained Earnings Statement - ANSWERS-A financial statement that
summarizes the amounts and causes of changes in retained earnings for
a specific time period.
\.Retained Earnings Equation - ANSWERS-Beginning Retained Earnings +
Net Income - Dividends = Ending Retained Earnings
\.Property, plant, and equipment (PP&E) - ANSWERS-assets with
relatively long useful lives that are currently used in operating the
business. For example, buildings, factories, automobiles, etc.
\.Assets - ANSWERS-money and other valuables belonging to an
individual or business
\.Liabilities - ANSWERS-Amounts owed to creditors
\.Stockholders' Equity - ANSWERS--The owners claim to the assets
, -Common stock and Retained earnings
\.Total Stockholders Equity equation - ANSWERS-(total contributed
capital + total retained earnings) - treasury stock
\.Accounting Equation - ANSWERS-An equation showing the
relationship among assets, liabilities, and owner's equity
assets= liabilities + stockholders equity
\.Book Value (Depreciation) - ANSWERS-an asset's original cost, less any
accumulated depreciation and impairment charges that have been
subsequently incurred
\.Straight Line Depreciation Formula - ANSWERS-(cost - salvage value) /
useful life
\.Adjusting Entries - ANSWERS-Entries made at the end of an
accounting period to ensure that the revenue recognition and expense
recognition principles are followed.
\.What are the four types of adjusting entries? - ANSWERS-Deferrals:
Prepaid Expenses and Unearned Revenues
COMPLETE QUESTIONS WITH VERIFIED
ANSWERS
\.Retained Earnings Statement - ANSWERS-A financial statement that
summarizes the amounts and causes of changes in retained earnings for
a specific time period.
\.Retained Earnings Equation - ANSWERS-Beginning Retained Earnings +
Net Income - Dividends = Ending Retained Earnings
\.Property, plant, and equipment (PP&E) - ANSWERS-assets with
relatively long useful lives that are currently used in operating the
business. For example, buildings, factories, automobiles, etc.
\.Assets - ANSWERS-money and other valuables belonging to an
individual or business
\.Liabilities - ANSWERS-Amounts owed to creditors
\.Stockholders' Equity - ANSWERS--The owners claim to the assets
, -Common stock and Retained earnings
\.Total Stockholders Equity equation - ANSWERS-(total contributed
capital + total retained earnings) - treasury stock
\.Accounting Equation - ANSWERS-An equation showing the
relationship among assets, liabilities, and owner's equity
assets= liabilities + stockholders equity
\.Book Value (Depreciation) - ANSWERS-an asset's original cost, less any
accumulated depreciation and impairment charges that have been
subsequently incurred
\.Straight Line Depreciation Formula - ANSWERS-(cost - salvage value) /
useful life
\.Adjusting Entries - ANSWERS-Entries made at the end of an
accounting period to ensure that the revenue recognition and expense
recognition principles are followed.
\.What are the four types of adjusting entries? - ANSWERS-Deferrals:
Prepaid Expenses and Unearned Revenues
