Accounting Final Exam

What is the basic accounting equation?

• Assets + Liabilities = Owners Equity

• Liability - Owners Equity = Assets

• Assets = Liabilities + Owners Equity

• Accounts Payable - Accounts Receivable = Total Cash

What does GAPP stand for?

• Generic Accounting and Admin Policies

• Generally Accepted Accounting Principles

• Gather Account Assets Payments

• Gains Assets Allocation Payables

Which of the following activities is NOT a function of Accounting?

• Recording

• Summarizing

• Debating

• Classifying

Which of the following is an example of an external user of company financial records?

• Chief Executive Officer

• Company Accountant

• Investor

• Chief Financial Officer

Which document tells whether the company made a profit or had a loss during the accounting period?

• Income Statement

• Balance Sheet

• Statement of Retained Earnings

• Statement of Cash Flows

Which document lists each account of the company and the balances in each?

• Income Statement

• Balance Sheet

• Statement of Retained Earnings

• Statement of Cash Flows

Which document tells how revenue came in and flowed out during the given accounting period?

• Income Statement

• Balance Sheet

• Statement of Retained Earning

• Statement of Cash Flows

Which phase of the accounting cycle would reconciliation fall under?

• Record Journal Entries

• Identify Transaction

• Calculate Unadjusted Trial Balance

• Create Final Statements

• Post Journal Transactions

The owner of a company received $4,000 for services rendered. Which two entries would be made on the transaction table?

• + 4,000 in Cash and + 4,000 Accounts Payable

• + 4,000 in Cash and + 4,000 Capital

• + 4,000 Accounts Payable and - 4,000 Capital

• - 4,000 Cash and + 4,000 Accounts Payable

A company bought a plot of land for $3,500. Which two entries would be made on the transaction table?

• + 3,500 Land and - 3,500 Capital

• + 3,500 Land and + 3,500 Accounts Payable

• - 3,500 Cash and + 3,500 Land

• - 3,500 Cash and - 3,500 Capital