Accounting exam 1 study guide
Accounting exam 1 study guide ACC256
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This 2 page Study Guide was uploaded by Haley Morse on Saturday September 17, 2016. The Study Guide belongs to ACC256 at Northern Arizona University taught by Dr. Bain in Fall 2016. Since its upload, it has received 39 views. For similar materials see basic accounting in Accounting at Northern Arizona University.
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Date Created: 09/17/16
From Dr. Bain: Take the sample test! Some of you go in to test being familiar with topics-you will fail Go in and START WORKING! Sit down KNOWING! ACC 255 Study Guide 1: 1. Define Posting 2. A trial balance will not balance if: a correct journal entry is posted twice. A. A correct journal entry is posted twice B. the purchase of supplies on account is debited to Supplies and credited to Cash. C. a $100 cash dividends is debited to the Dividends account for $1,000 and credited to Cash for $100. D. a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45. 3. Define Fiscal Year 4. Define The Revenue Recognition Principle 5. What is the periodicity assumption? A. Companies should recognize revenue in the accounting period in which it is earned B. Companies should match expenses with revenues C. The economic life of a business can be divided into artificial time periods D. The fiscal Year should correspond with the calendar year 6. Which one of these statements about the accrual basis of accounting is false? A. Companies record events that change their financial statements in the period in which events occur, even if cash was not exchanged. B. Companies recognize revenue in the period in which the performance obligation is satisfied C. This basis is in accord with generally accepted accounting principles Companies record revenue only when they receive cash, and record expense only when they pay out cash 7. Describe the advantages/disadvantages of the primary forms of business organization 8. Describe the purpose of accounting and identify users of accounting information From Dr. Bain: Take the sample test! Some of you go in to test being familiar with topics-you will fail Go in and START WORKING! Sit down KNOWING! 9. Describe the 3 types of business activities (operating, investing, financing) and classify specific activities 10. Define assets 11. Define liabilities and stockholders’ equity 12. Identify and define the 3 types of retained earnings transactions (R______, E________, D________) 13. Identify the 4 financial statements 14. What are the rules of debits and credits 15. Describe the purpose of the journal, ledger, posting, and trial balance 16. Record journal entries for transactions in the general journal 17. Post journal entries to the general ledger and prepare a trial balance 18. Explain the purpose of adjusting journal entries 19. What is the difference between temporary and permanent accounts 20. Prepare the post-closing trial balance (And know which accounts are included) 21. Describe the steps in the accounting Cycle Good luck! DO NOT ABBREVIATE! Don’t forget a pencil and good erasure! Good Luck!
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