Final Exam Review.docx - Principles of Financial Accounting...

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Principles of Financial Accounting Final ExamMultiple Choice/ True False section-Is the Account an Asset, Liability, or Owner’s EquityoAssetAnything tangible or intangible that can be owned or controlled to producevalue and that is help to have positive economic valueoLiabilityA legally binding obligation payable to another entityoOwner’s EquityTotal assets minus total liabilities-Income StatementoFinancial statement that reports a company's financial performance over a specificaccounting period. Financial performance is assessed by giving a summary ofhow the business incurs its revenues and expenses through both operating andnon-operating activities.o-Balance Sheetoa statement of the assets, liabilities, and capital of a business or other organizationat a particular point in time, detailing the balance of income and expenditure overthe preceding period.
o-Statement of Owner’s EquityoFinancial statement that reports the changes in the equity section of the balancesheet during an accounting period. In other words, it reports the events thatincreased or decreased stockholder's equity over the course of the accountingperiod.Strauss Printing ServicesStatement of Owner's EquityFor the Year Ended December 31, 2014Strauss, Capital$ 100,000
Add: Additional Contributions10,000Net Income57,100Total$ 167,100Less: Strauss, Drawings20,000Strauss, Capital – Dec. 31, 2014$ 147,100o-Formula for Net Income with a Merchandise CompanyoNI for a Service Business(Fees earned – Operating Expense)

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Term
Fall
Professor
N/A
Tags
Financial Accounting, Balance Sheet, Generally Accepted Accounting Principles, Owner s Equity, Strauss

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