BBL FINAL EXAM STUDY CARDS
QUESTIONS AND VERIFIED
ANSWERS|100% CORRECT|GRADE A+
Income and expenses are included in what element of the Accounting Equation? - ANSWER Equity
When a business collects revenue, how is the Accounting Equation affected? - ANSWER Assets increase
and Equity increases.
What is Double-Entry accounting? - ANSWER For every transaction, there is at least one debit and at
least one credit.
What is the normal balance of an Asset account? - ANSWER A debit balance.
What is the normal balance of a Revenue account? - ANSWER A credit balance.
A Debit to a Liability account will do what to the account? - ANSWER It will decrease the account.
What is The Ledger? - ANSWER 1. Used to classify and summarize transactions.
2. The bridge from transactions to financial statements.
In what number series would you find the Equity on the Chart of Accounts? - ANSWER 3000 series
What entity governs the Generally Accepted Accounting Principles (GAAP)? - ANSWER Financial
Accounting Standards Board (FASB).
Which of the following are true about the Balance Sheet? - ANSWER 1. Lists all expenses.
2. Shows equity (capital) in the business.
3. Is the accounting equation in financial statement form.
4. Balances in the accounts are for specific dates.
QUESTIONS AND VERIFIED
ANSWERS|100% CORRECT|GRADE A+
Income and expenses are included in what element of the Accounting Equation? - ANSWER Equity
When a business collects revenue, how is the Accounting Equation affected? - ANSWER Assets increase
and Equity increases.
What is Double-Entry accounting? - ANSWER For every transaction, there is at least one debit and at
least one credit.
What is the normal balance of an Asset account? - ANSWER A debit balance.
What is the normal balance of a Revenue account? - ANSWER A credit balance.
A Debit to a Liability account will do what to the account? - ANSWER It will decrease the account.
What is The Ledger? - ANSWER 1. Used to classify and summarize transactions.
2. The bridge from transactions to financial statements.
In what number series would you find the Equity on the Chart of Accounts? - ANSWER 3000 series
What entity governs the Generally Accepted Accounting Principles (GAAP)? - ANSWER Financial
Accounting Standards Board (FASB).
Which of the following are true about the Balance Sheet? - ANSWER 1. Lists all expenses.
2. Shows equity (capital) in the business.
3. Is the accounting equation in financial statement form.
4. Balances in the accounts are for specific dates.
