Acct 2400 Review 1

Front

What is the Accounting Equation?

Back

Assets = Liabilities + Stockholder's Equity

Front

What are the two accounts that make up Stockholder's Equity?

Back

Common Stock and Retained Earnings

Front

What type of account is inventory?

Back

Current asset

Front

What is the definition of a Trial Balance?

Back

A Trial Balance is a statement that lists the balances of all accounts in the general ledger to verify that total debits equal total credits.

Front

According to GAAP, when is revenue recognized?

Back

Revenue is recognized in the accounting period in which the performance obligation is satisfied.

Front

What are the four main financial statements that were covered in Acct 2400? Options: Financial Position Report, Income Statement, Balance Sheet, Statement of Cash Flows, Statement of Retained Earnings, Profit and Loss Statement, Cash Flow Projection

Back

Income Statement, Balance Sheet, Statement of Cash Flows, Statement of Retained Earnings

Front

What is the impact of debits on assets and liabilities?

Back

Debits increase assets and decrease liabilities.

Front

What is the impact of credits on assets and liabilities?

Back

Credits increase liabilities and decrease assets.

Front

What is the normal balance for revenue?

Back

Credit

Front

What is the normal balance for expenses?

Back

Debit