ACTY 2100 Exam 1 Preparation

What is the basic accounting equation?

• Net income = Revenue - Expenses

• Asset = Liability + Stockholders' Equity

• Stockholders' Equity = Common Stock + Retained Earnings

• Ending Retained Earnings = Beg RE +NI - Dividend

What is the basic accounting equation?

• Net income = Revenue - Expenses

• Asset = Liability + Stockholders' Equity

• Stockholders' Equity = Common Stock + Retained Earnings

• Ending Retained Earnings = Beg RE +NI - Dividend

What are the accounts that are increasing with debit?

• Assets, Expenses, and Dividends

• Assets, Revenues, and Expenses

• Liability, Stockholders's Equity, and Revenue

• Common Stock, Net Income, and Stockholders' Equity.

What is the acronym for Generally Accepted Accounting Principles?

(a)  

What are assets?

(a)  

Measure the business activities and Present them to the external party for the decision-making process is a definition of?

(a)  

What is the definition of Debit and Credit in Accounting?

• Right and Left

• Left and Right

• Cash and Cashless

• Cash and Account receiveable

A transaction that a company has with its investors and creditors. what transaction activities is this?

• Investing

• Operating

• Financing

• Corporating

A transaction involving the purchase and sale of long-term resources. Define this Business activity?

• Financing

• Investor

• Operating

• Investing

A transaction that relates to the primary operations of the company, including revenue and expenses. What business activity is this?

• Operating Activity

• Financing Activity

• Investing Activity

• Accounting Activity