Download PACE Exam With 100% Correct And Verified Answers and more Exams Advanced Education in PDF only on Docsity! PACE Exam With 100% Correct And Verified Answers Accounting Equation - Correct Answer-Assets = Liabilties + Stockholders Equity Gross Profit Margin/Profit - Correct Answer-Sales revenue - cost of goods sold Net Income - Correct Answer-Gross Margin - Expenses Retained Earnings - Correct Answer-BegRE + NI - Dividends Activities on the Statement of Cash Flows - Correct Answer-Operating Investing Financing Operating Activities - Correct Answer-Normal day to day activities Change in current assets and liabilities Investing Activites - Correct Answer-Changes in long term assets Use for more than a year Financing Activites - Correct Answer-Changes in long term debt Changes in SE except for net income DEAD Rule - Correct Answer-Debit all Expenses, Assets and Dividends The heading of Finacincal Statements - Correct Answer-Name of Company Name of Statement The Date If assets are 1.5 times liabilities and the stockholders equity is 1500 what is the value of assets - Correct Answer-4500 Accounts that may require adjustments - Correct Answer-prepaid rent A/R Supplies Deprication Intrest Expense Wages Expense Unearned Revenue Another word for adjusting entries - Correct Answer-True Up Difference between adjusting and closing entries - Correct Answer-Only close revenues, expenses, and dividends This updates retained earnings Book error: We debited cash for 200 and the correct debit was 2000 - Correct Answer- An addition to the book balance Outstanding checks - Correct Answer-A subtraction from the bank balance you wrote the check but the bank has yet to take it out of your account. The bank charged our account, erroneously for a check written by another bank customer - Correct Answer-An addiction to the bank balance Service charge - Correct Answer-A subtaction from the book balance Deposits in transit - Correct Answer-An addiction to the bank balance Deposit into the bank NSF Check - Correct Answer-Subtraction from the book balance its a bounce check the bank knows but you have to tske the money of your account Bank collection of a note receiveable on our behalf - Correct Answer-An addition to the book balance Matching Principle - Correct Answer-we recognize this possibilty expense when the revenue is recognized Two methods of reconizing uncollectiable expenses - Correct Answer-Income statement approach (percentage of sales) Balance Sheet Approach (based on the accounts receivable) Balance sheet Approach - Correct Answer-Has a new ending balance Nets Accounts Receivable - Correct Answer-Accounts Receivable - Allowance for BD Journal Entry for an uncollectible expenses - Correct Answer-Dr.Uncollectible Expense Cr. Allowance for BD because it is a conta asset Journal Entry for net sales - Correct Answer-Dr. Accounts rec. Cr. Sales revenues Journal Entry for a write off uncollectibles - Correct Answer-Dr. Allowance for BD Cr. A/R Calculation of what would be on the Balance Sheet (% of sales) - Correct Answer-A/R - Allowance for BD
