Exam Review 1

Exam Review 1 - Accounting 209 Review for Exam 1 This...

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Accounting 209 Review for Exam 1 This review is intended to be a study aid to help you organize course material and provide examples of some types of questions you might see on the exam, but is not a comprehensive listing of every possible question/concept. Solutions to the example problems are at the end of the review. I. Terms to know (could be used in matching, fill-in-the-blank, or multiple choice questions) Accounting assumptions and principles: Financial Statements Historical cost Income statement Consistency Single step Entity Multi step Matching Balance sheet Time period Statement of cash flows Revenue recognition Statement of Retained earnings Materiality (or Stmt of Stockholders’equity) Full disclosure Other terms Accrual basis accounting Accounting Asset Account Current asset General ledger Non-current asset General journal Liability Debit Current liability Credit Non-current liability Trial Balance Common stock FASB Retained earnings GAAP Revenue IFRS Expense Sarbanes-Oxley II. Common balance sheet accounts CURRENT ASSETS (See note 1) CURRENT LIABILITIES (see note 1) Cash Accounts payable Marketable securities Wages payable Accounts receivable Taxes payable Inventory Interest payable Prepaid expenses Unearned revenue Supplies Accrued liabilities (or accrued expenses) Notes payable (see note below) NON CURRENT ASSETS (see note 2) NON CURRENT LIABILITIES (see note 3) Land Notes payable (long term) Buildings Mortgages payable Equipment Bonds payable Machinery STOCKHOLDERS’ EQUITY Office furniture Common stock (or Capital stock) Land improvements Retained earnings Intangible Assets Patents Copyrights Goodwill
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The above accounts are examples of the types and classifications of balance sheet accounts. The list is not a complete list of every account you might ever encounter. NOTES: 1. Current assets are “liquid” assets, that is assets in the form of cash or that the firm expects to use up or convert to cash in one year (or one operating cycle). The six current assets shown above are the only current assets that we will discuss in this class. Note, however, that marketable securities may also be called by other names, such as short-term investments. Current liabilities are debts that must be paid within one year of the balance sheet date. 2. Non-current assets are all assets that not current. They may be grouped in many different ways. Other names for Non-current assets are “Long-term Assets”, and “Fixed Assets”. 3.
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Exam Review 1 - Accounting 209 Review for Exam 1 This...

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