ACCT-UB 1 Lecture 14: [ACCT-UB 1] - Final Exam Guide - Comprehensive Notes fot the exam (26 pages long!)
29 Nov 2016
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The mid term practice exam and their answers can be found on nyu classes. The following are notes she mentioned in class and some explanation of answers. 2: loan from a bank = liability increases, asset increases. 3: distributions to owners (dividends) are reported in the income statement as it is not an expense. 4: 40,000 (original question cost. is independent from the payment arrangement) / four years of useful life. 6: prepaid rent expense is an asset, not an expense account. 7: accumulated depreciation is a contra asset account (asset side of the balance sheet, but reduces asset balance) A- one form of asset decreases, another form of asset increases. C- depreciation reduces net income, so it does impact the income statement. 11: after closing entry, all income statement accounts will become 0. Therefore, supplies expense account becomes 0 as well. It increases contributed capital (direct investment by investors).
