ACC 201 Study Guide - Midterm Guide: Retained Earnings, Net Income, Income Statement
Document Summary
There is no ratio sheet for this test. Revenue equation: net income = revenue - expense. Ending retained earnings: beginning reatined earnings + net income - dividend. Financial statements: what, how many, in what order. Concepts: forms of business, accounting cycle, accounting assumptions. Learn to identify assets: cash, accounts receivable, supplies, building, equipment . Learn to identify liabilities: accounts payable, note payable, wage payable . Learn to identify equity: retained earnings, common stock . Balance sheet: what is it, at what time, common format. When to make a debit and when to make a credit (dea i lor) What account has a debit balance and what has a credit balance. Revenue is an equity account with a credit balance. Expense is an equity account with a debit balance. Income statement; what is it, at what time, common format.
