FABM 2 Preliminary Exam

planning, recording, analyzing, and interpreting financial information

• accounting equation

• asset

• accounting

• balance sheet

an equation showing the relationship among assets, liabilities, and owner's equity.

• accounting

• asset

• accounting equation

• balance sheet

anything of value that is owned

• asset

• capital

• expense

• liability

a business that performs an activity for a fee

• source document

• service business

• t account

• income statment

Accounting Equation

• Liabilities - Equity = Assets

• Assets + Equity = Liabilities

• Liabilities + Equity = Assets

Which of the following is a current asset?

• Land

• Equipment

• Accounts receivable

• Accounts payable

What is the formula for Costs of Good Sold?

• Beginning Inventory + Purchases in Current Period - Ending Inventory

• Direct Labor+ Direct Costs + Manufacturing Overhead

• Predetermined

  overhead rate x Amount of the allocation base incurred on the job

• Total Cost of Production - Variable Cost per Unit No x No of Units Produced

Which of the following accounts appears on the Balance Sheet

• Sales Revenue

• Accounts Receivable

• Dividends

• All of these

Cost of Goods Sold is what type of account?

• Asset

• Liability

• Owners' Equity

• Expense

Revenue - expenses = _______________

• Retained Earnings

• Common Stock

• Net Income

• Dividends