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Acc101 Mini Exam Review For Students

This document provides a review for a mini exam covering 5 chapters of accounting concepts. It includes objectives, definitions, examples, and practice problems. The objectives cover the basic accounting equation, debits and credits, journal entries, posting to accounts, and the trial balance process. Sample problems at the end test the understanding of financial statements, journal entries, and basic accounting concepts.

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Hundaol Kumaa
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63 views

Acc101 Mini Exam Review For Students

This document provides a review for a mini exam covering 5 chapters of accounting concepts. It includes objectives, definitions, examples, and practice problems. The objectives cover the basic accounting equation, debits and credits, journal entries, posting to accounts, and the trial balance process. Sample problems at the end test the understanding of financial statements, journal entries, and basic accounting concepts.

Uploaded by

Hundaol Kumaa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Mini Exam Review

Chapter 1
Objective 1: Activities and users of accounting
1. Define the three activities of accounting:
a. Identify:

b. Record:

c. Communicate:

2. Give examples of the uses of accounting:


a. Internal:

b. External:

Objective 2: Ethics, Principles, and Assumptions

1. Identify the term to the definitions: Ethics, Generally Accepted Accounting


Principles (GAAP), International Accounting Standards Board (IASB),
International Financial Reporting Standards (IFRS), Sarbanes-Oxley Act (SOX),
Security Exchange Commission (SEC):
TERMS DEFINITION
Law passed by Congress intended to
reduce unethical corporation behavior
An accounting standard-setting body
that issues standards adopted by many
countries outside of the United States
Standards set by the International
Accounting Standards Board
The standards of conduct by which
one’s actions are judged as right or
wrong, honest or dishonest, fair or not
fair
Common standards that indicate how to
report economic events
A governmental agency that oversees
US financial markets and accounting
standard setting bodies

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2. Match the following to the correct definition: Economic Entity Assumption, Fair
Value Principle, Historical Cost Principle, Monetary Unit Assumption
TERMS DEFINITION
States that assets and liabilities should
be reported at the price received to sell
an asset or settle a liability
States that companies include in their
accounting records only transaction
data that can be expressed in terms of
money
Requires that the activities of the entity
be kept separate and distinct from the
activities of the owner
States that companies should record
assets at their cost
3. Types of Business Organizations:
4. Types of Business Organizations:
a. Proprietorship:

b. Partnership:

c. Corporation:

Objective 3: The accounting Equation

= +

1. Define Asset:
a. Examples:

2. Define Liability:
a. Examples:

3. Define Stockholder’s Equity:


Define the following and indicate if it increases or decreases Stockholder’s Equity
a. Common Stock:

b. Revenue:

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c. Expenses:

d. Dividends:

Objective 4: PRACTICE - Analyze the accounting equation


Example: Analyze the following transactions for Hawk Corp. These relate to the first
month of business beginning January 1, 2020.
1. Invested $10,000 in exchange for Common Stock
2. Purchased Equipment of $700 for Cash
3. Purchased Supplies of $400 on account
4. Performed services for customer and received $3,000 cash
5. Paid salaries of $1,500 to workers
6. Paid $200 of amount owed in transaction #3
7. Performed services for customer received $500 and sent a bill for $2,000.
8. Paid Rent Expense of $1,000
9. Received $600 from transaction #7
10. Paid dividends of $300

ASSETS LIABILITY STOCKHOLDERS EQUITY


Cash AR Supplies Equipment AP CS Revenue Expenses Dividends
1
2
3
4
5
6
7
8
9
10
SUM

Objective 5: Financial Statements

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Define:

1. Income Statement:

2. Retained Earnings Statement:

3. Balance Sheet:

4. Statement of Cash Flows:

Example: Build the financial statements for Hawk Corp as of January 31, 2020.
Income Statement

Retained Earnings Statement

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Balance Sheet

Chapter 2
Objective 1: Debits and Credits
1. A debit is on the _____________ side of a T account
2. A credit is on the _____________side of a T account
3. Double entry system provides that _____________ must equal ____________.
4. A Normal Balance is the side where _______________ are recorded.

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PRACTICE:
INCREASES WITH DECREASES WITH
DEFINE
(Debit or Credit) (Debit or Credit)
ASSET
LIABILITY
COMMON STOCK
RETAINED
EARNINGS
DIVIDENDS
REVENUE
EXPENSES

PRACTICE: Indicate the Normal Balance of each account.


Cash Retained Earnings
Account Payable Prepaid Insurance
Land Unearned Revenue
Supplies Expense Salaries Expense
Interest Payable Notes Payable
Account Receivable Supplies
Dividends Common Stock
Service Revenue Rent Expense

Objective 2: PRACTICE - Journal Entries


Example: Analyze the following transactions for Hawk Corp. These relate to the first
month of business beginning January 1, 2020.
11. Invested $10,000 in exchange for Common Stock

12. Purchased Equipment of $700 for Cash

13. Purchased Supplies of $400 on account

14. Performed services for customer and received $3,000 cash

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15. Paid salaries of $1,500 to workers

16. Paid $200 of amount owed in transaction #3

17. Performed services for customer received $500 and sent a bill for $2,000.

18. Paid Rent Expense of $1,000

19. Received $600 from transaction #7

20. Paid dividends of $300

Objective 3: PRACTICE- Posting


Cash AR Supplies Equipment AP

CS Revenue Expenses Dividends

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Objective 4: PRACTICE- Trial Balance

Debit Credit

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Sample Exam Problems:
1. All of the financial statements are for a period of time except the
a. income statement.
b. retained earnings statement.
c. balance sheet.
d. statement of cash flows.

2. Kennedy Company issued stock to Ed Kennedy in exchange for his investment of


$75,000 cash in the business. The company recorded revenues of $555,000,
expenses of $420,000, and had paid dividends of $30,000. What was Kennedy's
net income for the year?
a. $105,000.
b. $135,000.
c. $165,000.
d. $180,000.

3. Internal users of accounting information include all of the following except


a. company officers.
b. investors.
c. marketing managers.
d. production supervisors.

4. Delta72 Company received a cash advance of $700 from a customer. As a result


of this event,
a. assets increased by $700.
b. stockholders’ equity increased by $700.
c. liabilities decreased by $700.
d. assets and stockholders’ equity increased by $700.

5. On January 14, Edamame Industries purchased supplies with a cost of $700 on


account. The entry to record the purchase will include
a. a debit to Supplies and a credit to Accounts Payable.
b. a debit to Supplies Expense and a credit to Accounts Receivable.
c. a debit to Supplies and a credit to Cash.
d. a debit to Accounts Receivable and a credit to Supplies.

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6. Presented below is information related to Pickett Real Estate Agency.
Oct. 1 Jeff Pickett begins business as a real estate agent with a cash
investment of $30,000 in exchange for
2 Hires an administrative assistant.
3 Purchases office equipment for $3,500, by paying $500 cash with
the balance on account.
Journalize the transactions. (You may omit explanations.)

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