BRAINSCAPE1
BUS A200 Final Exam with complete
solutions latest version
Ending Balance (or) OE - CORRECT ANSWER-Beginning Balance
+
NI (Revenue-Expenses)
-
Dividends
= Ending Balance (or) OE
Retained Earnings - CORRECT ANSWER-Revenue-Expenses-Dividends=RE
The purpose of the accrual basis of accounting is to: - CORRECT ANSWER-Improve
the matching of revenue and expense in the proper period.
An account that stays open, is carried over to the next period. Prepaid insurance,
Retained Earnings, Assets, Liability, and Common stock accounts are examples of this.
- CORRECT ANSWER-Permanent Account
An account that get closed after the accounting period, and doesn't transfer to the next
period. Revenue, expense, and Dividend accounts are examples of this. - CORRECT
ANSWER-Temporary Account
Where does the expense ON ACCOUNT get recorded? - CORRECT ANSWER-
Account payable, under liabilities.
The entry to recognize salary expense incurred but not yet paid does what to which
account? - CORRECT ANSWER-An increase in liabilities
A businesses equity comes from - CORRECT ANSWER-investments by owners, and
amounts earned by the business
The recognition of an expense may be accompanied by what? - CORRECT ANSWER-
Increase in liabilities
BRAINSCAPE1
BUS A200 Final Exam with complete
solutions latest version
Ending Balance (or) OE - CORRECT ANSWER-Beginning Balance
+
NI (Revenue-Expenses)
-
Dividends
= Ending Balance (or) OE
Retained Earnings - CORRECT ANSWER-Revenue-Expenses-Dividends=RE
The purpose of the accrual basis of accounting is to: - CORRECT ANSWER-Improve
the matching of revenue and expense in the proper period.
An account that stays open, is carried over to the next period. Prepaid insurance,
Retained Earnings, Assets, Liability, and Common stock accounts are examples of this.
- CORRECT ANSWER-Permanent Account
An account that get closed after the accounting period, and doesn't transfer to the next
period. Revenue, expense, and Dividend accounts are examples of this. - CORRECT
ANSWER-Temporary Account
Where does the expense ON ACCOUNT get recorded? - CORRECT ANSWER-
Account payable, under liabilities.
The entry to recognize salary expense incurred but not yet paid does what to which
account? - CORRECT ANSWER-An increase in liabilities
A businesses equity comes from - CORRECT ANSWER-investments by owners, and
amounts earned by the business
The recognition of an expense may be accompanied by what? - CORRECT ANSWER-
Increase in liabilities
BRAINSCAPE1
