ACC 2303 Study Guide - Quiz Guide: Accrual, Current Liability, Deferral
19 Sep 2017
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30 multiple choice 4 workout problems (do first) Entity assumption: example: mr. shady has his company purchase his wife"s personal car so that he can deduct it on the company"s tax return. Is that a problem: continuity assumption a business will stay a business, historical cost principle assets should be recorded at their actual cost, stable-monetary-unit assumption effect of inflation is ignore. Accounting equation: assets = liabilities + owner"s equity, extra problems at the end of chapter 1 notes packet. Corporate accounting equation(s: stockholder"s equity = paid-in capital (common stock) + retained earnings, retained earnings = net income - dividends, net income = revenue - expenses. Accounts: basic summary device composed of 4 elements, beginning balance, + increases to the balance, - decreases to the balance, = ending balance, assets. Unearned revenue: stockholder"s equity (owner"s equity) Impact of transactions on accounts rules of debits and credits.
