ACCY 201 FINAL EXAM BARTON

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ACCY 201 FINAL EXAM – BARTON

UPDATED ACTUAL EXAM WITH CORRECT

SOLUTIONS.

accounting - correct answer- an information and measurement system that identifies, records, and communicates an organization's business activities

bookkeeping - correct answer- recording transactions and events

external users - correct answer- people using accounting information who are not directly involved in running the organization (lenders, shareholders, external auditors, labor unions, suppliers, customers)

internal users - correct answer- people using accounting information who are directly involved in managing the organization (managers)

ethics - correct answer- codes of conduct by which actions are judged as right or wrong, fair or unfair, honest or dishonest 1 / 4

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auditors - correct answer- those who verify the effectiveness of internal controls

internal controls - correct answer- procedures to protect assets, ensure reliable accounting, promote efficiency, uphold policies (prevent fraud)

cost benefit constraint - correct answer- information disclosed by an entity must have benefit to the user that are greater than the costs of providing it

going concern, monetary unit, time period, business entity - correct answer- four accounting assumptions

cost, revenue recognition, matching, full disclosure - correct answer- four general principles of accounting

assets - correct answer- resources a business owns or controls that are expected to provide current and future benefits to the business 2 / 4

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liabilities - correct answer- creditors' claims on assets

equity - correct answer- net assets, the owners claim on assets, equal to assets minus liabilities

assets = liabilities + equity - correct answer- accounting equation

income, retained earnings, balance sheet, cash flow - correct answer- four types of financial statements

net income - correct answer- revenues - expenses

source documents - correct answer- identify and describe transactions and events entering the accounting system, paper or electronic

ledger - correct answer- a record of all accounts and their balances, often electronic 3 / 4

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creditors - correct answer- individuals and organizations that have rights to receive payments from a company

debtors - correct answer- those who owe money

unearned revenue - correct answer- a liability that is recorded when customers pay in advance for products or services

T account - correct answer- represents a ledger account and is used to show the effects of transactions

debit - correct answer- Dr, recorded on the left side of a t account, an entry that increases an asset or expense account, or decreases a liability, revenue, or equity account

credit - correct answer- Cr, recorded on the right side, an entry that decreases an asset or expense account, or increases a liability, revenue, or equity account

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