MGT 8803 - FINANCIAL ACCOUNTING EXAM 1 STUDY SET QUESTIONS SOLVED CORRECTLY
1. Assets
2. Liabilities
3. Equity
4. Revenue
5. Expenses - Answers Types of Accounts
A financial statement that reports the assets and claims to those assets at a specific point in time. -
Answers Balance Sheet
A financial statement that reports a company's revenues and expenses and resulting net income or net
loss for a specific period of time. - Answers Income Statement
except deferred revenues is income statement account - Answers Any account with "revenues" in the
title
except Prepaid Expenses will be an income statement account - Answers Any account with "expenses" in
the title
liability account - Answers Any account with "payables" in the title will be a
Type: Asset
Statement: Balance Sheet
Current Account - Answers Cash
cash received in advance from a customer for products or services to be provided in the future.
Type: Liability
Statement: Balance Sheet
Current Account - Answers Deferred Revenue
A corporation's own stock that it has reacquired
Type: Contra-Equity
Statement: Balance Sheet - Answers Treasury Stock
the total cost of merchandise sold during the period
Type: Expense
, Statement: Income Statement - Answers Cost of Goods Sold
the interest accrued on money borrowed
Type: Expense
Statement: Income Statement - Answers Interest Expense
The total amount charged customers for merchandise sold, including cash sales and sales on account.
Type: Revenue
Statement: Income Statement - Answers Sales
reduction in the amount of cash received from a customer for early payment
Type: Contra-Revenue
Statement: Income Statement - Answers Sales Discounts
credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the
vendor's accounts receivable
Type: Contra-Revenue
Statement: Income Statement - Answers Sales Return
contra liability account used to record the amount of discount on a bond issue
Type: Contra-Liability
Statement: Balance Sheet - Answers Discounts on Bonds Payable
A list of assets, usually containing the value of individual items
Type: Asset
Statement: Balance Sheet
Current Account - Answers Iventory
This account is used to record employee compensation that has not yet been received by the employee
Type: Liability
Statement: Balance Sheet
Current Account - Answers Wages Payable
Term used to describe the total amount paid in by stockholders for the shares they purchase.
1. Assets
2. Liabilities
3. Equity
4. Revenue
5. Expenses - Answers Types of Accounts
A financial statement that reports the assets and claims to those assets at a specific point in time. -
Answers Balance Sheet
A financial statement that reports a company's revenues and expenses and resulting net income or net
loss for a specific period of time. - Answers Income Statement
except deferred revenues is income statement account - Answers Any account with "revenues" in the
title
except Prepaid Expenses will be an income statement account - Answers Any account with "expenses" in
the title
liability account - Answers Any account with "payables" in the title will be a
Type: Asset
Statement: Balance Sheet
Current Account - Answers Cash
cash received in advance from a customer for products or services to be provided in the future.
Type: Liability
Statement: Balance Sheet
Current Account - Answers Deferred Revenue
A corporation's own stock that it has reacquired
Type: Contra-Equity
Statement: Balance Sheet - Answers Treasury Stock
the total cost of merchandise sold during the period
Type: Expense
, Statement: Income Statement - Answers Cost of Goods Sold
the interest accrued on money borrowed
Type: Expense
Statement: Income Statement - Answers Interest Expense
The total amount charged customers for merchandise sold, including cash sales and sales on account.
Type: Revenue
Statement: Income Statement - Answers Sales
reduction in the amount of cash received from a customer for early payment
Type: Contra-Revenue
Statement: Income Statement - Answers Sales Discounts
credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the
vendor's accounts receivable
Type: Contra-Revenue
Statement: Income Statement - Answers Sales Return
contra liability account used to record the amount of discount on a bond issue
Type: Contra-Liability
Statement: Balance Sheet - Answers Discounts on Bonds Payable
A list of assets, usually containing the value of individual items
Type: Asset
Statement: Balance Sheet
Current Account - Answers Iventory
This account is used to record employee compensation that has not yet been received by the employee
Type: Liability
Statement: Balance Sheet
Current Account - Answers Wages Payable
Term used to describe the total amount paid in by stockholders for the shares they purchase.
