ACCT 209 TAMU EXAM 1| WITH ACTUAL
COMPLETE QUESTIONS AND 100%
CORRECT SOLUTIONS| APPROVED BY
EXPERT| NEWLY UPDATED 2025.
What is the format of the income statement?
ANSWER ✔✔ NI = Revenues - Expenses
What is the format of the balance sheet?
ANSWER ✔✔ Assets = Liabilities + Total Stockholder's Equity
What is the format of the statement of retained earnings?
ANSWER ✔✔ Beginning RE + Net Income - Dividends = Ending RE
What connects the income statement and balance sheet?
ANSWER ✔✔ Statement of Retained Earnings
What is the correct order to prepare financial statements?
ANSWER ✔✔ Income Statement → Statement of Retained Earnings → Balance Sheet
Why must financial statements be prepared in this order?
ANSWER ✔✔ Because Net Income is used in the Statement of Retained Earnings, and
ending RE is used in the Balance Sheet
What type of account is Cash?
ANSWER ✔✔ Asset
What type of account is Marketable Securities?
ANSWER ✔✔ Asset
What type of account is Accounts Receivable?
ANSWER ✔✔ Asset
What type of account is Inventory?
ANSWER ✔✔ Asset
What type of account is Prepaid Expenses?
ANSWER ✔✔ Asset
, What type of account is Supplies?
ANSWER ✔✔ Asset
What type of account is Land?
ANSWER ✔✔ Asset
What type of account is Buildings?
ANSWER ✔✔ Asset
What type of account is Equipment?
ANSWER ✔✔ Asset
What type of account is Machinery?
ANSWER ✔✔ Asset
What type of account is Office Furniture?
ANSWER ✔✔ Asset
What type of account is Intangible Assets?
ANSWER ✔✔ Asset
What type of account is Accounts Payable?
ANSWER ✔✔ Liability
What type of account is Wages Payable?
ANSWER ✔✔ Liability
What type of account is Taxes Payable?
ANSWER ✔✔ Liability
What type of account is Interest Payable?
ANSWER ✔✔ Liability
What type of account is Unearned Revenue?
ANSWER ✔✔ Liability
What type of account is Accrued Liabilities (or Expenses)?
ANSWER ✔✔ Liability
What type of account is Notes Payable?
ANSWER ✔✔ Liability
What type of account is Mortgages Payable?
ANSWER ✔✔ Liability
COMPLETE QUESTIONS AND 100%
CORRECT SOLUTIONS| APPROVED BY
EXPERT| NEWLY UPDATED 2025.
What is the format of the income statement?
ANSWER ✔✔ NI = Revenues - Expenses
What is the format of the balance sheet?
ANSWER ✔✔ Assets = Liabilities + Total Stockholder's Equity
What is the format of the statement of retained earnings?
ANSWER ✔✔ Beginning RE + Net Income - Dividends = Ending RE
What connects the income statement and balance sheet?
ANSWER ✔✔ Statement of Retained Earnings
What is the correct order to prepare financial statements?
ANSWER ✔✔ Income Statement → Statement of Retained Earnings → Balance Sheet
Why must financial statements be prepared in this order?
ANSWER ✔✔ Because Net Income is used in the Statement of Retained Earnings, and
ending RE is used in the Balance Sheet
What type of account is Cash?
ANSWER ✔✔ Asset
What type of account is Marketable Securities?
ANSWER ✔✔ Asset
What type of account is Accounts Receivable?
ANSWER ✔✔ Asset
What type of account is Inventory?
ANSWER ✔✔ Asset
What type of account is Prepaid Expenses?
ANSWER ✔✔ Asset
, What type of account is Supplies?
ANSWER ✔✔ Asset
What type of account is Land?
ANSWER ✔✔ Asset
What type of account is Buildings?
ANSWER ✔✔ Asset
What type of account is Equipment?
ANSWER ✔✔ Asset
What type of account is Machinery?
ANSWER ✔✔ Asset
What type of account is Office Furniture?
ANSWER ✔✔ Asset
What type of account is Intangible Assets?
ANSWER ✔✔ Asset
What type of account is Accounts Payable?
ANSWER ✔✔ Liability
What type of account is Wages Payable?
ANSWER ✔✔ Liability
What type of account is Taxes Payable?
ANSWER ✔✔ Liability
What type of account is Interest Payable?
ANSWER ✔✔ Liability
What type of account is Unearned Revenue?
ANSWER ✔✔ Liability
What type of account is Accrued Liabilities (or Expenses)?
ANSWER ✔✔ Liability
What type of account is Notes Payable?
ANSWER ✔✔ Liability
What type of account is Mortgages Payable?
ANSWER ✔✔ Liability
