SDSU ACCOUNTING 201 (DEBOSKEY) EXAM ONE NEWEST 2026/2027 ACTUAL EXAM COMPLETE QUESTIONS | Exams Accounting | Docsity

Stockholders' Equity

The owners' claim to assets.

Dividends

Earnings distributed to stockholders.

Revenues

Sales of products or services to customers.

Expenses

The cost of assets consumed or services used in the process of generating revenues.

DEALOR - Debit Increases

DEA: Assets, Expenses, Divivdend

DEALOR - Credit Increases

LOR: Liabilities, Owners/Stockholder's Equity, Revenues

Activities Measured by Accountants

Financing, Operating, Investing

Accounting Equation

$$\text{Assets} = \text{Liabilities} + \text{Stockholder's Equity}$$

Net Income Equation

$$\text{Net income} = \text{Revenues} - \text{Expenses}$$

Income Statement

Financial statement that shows the sales revenues, expenses, and net income of a firm over a period of time.

Statement of Cash Flows

A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time.

Statement of Stockholder's Equity

A financial statement that shows changes in a corporation's ownership for a fiscal period.

Balance Sheet

Financial statement that shows the assets, liabilities and net worth (Equity) of the firm at a point in time.

Assets

Resources owned by a business.

Liabilities

Amounts owed to creditors.

GAAP

Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities.

FASB

Financial Accounting Standards Board, is the private sector body given the primary responsibility to work out the detailed rules that become GAAP.

IFRS

International Financial Reporting Standards. International accounting standards promulgated by the International Accounting Standards Board.

SEC

Securities and Exchange Commission

Revenue Recognition Principle

The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.

Expense Recognition Principle

Match expenses with revenues in the period when the company makes efforts to generate those revenues.

Adjusting Entries

Journal entries recorded to update general ledger accounts at the end of a fiscal period.

Deferred Revenue

Cash received in advance from a customer for products or services to be provided in the future.

Interest Formula

$$\text{Interest} = \text{principal} \times \text{rate} \times \text{time}$$

Internal Controls

Procedures within the business that are designed to protect cash and other assets and to keep reliable records.