Accounting Exam Review

A business structure with a single owner

• Sole Proprietorship

• Partnership

• Government Entity

• Corporation

Accounting Cycle: Step 1

• Identify an Analyze Transactions

• Record Transactions to Journal

• Post Journal Information to Ledger

• Prepare Unadjusted Trial Balance

Accounting Equation

• Liabilities - Equity = Assets

• Assets + Equity = Liabilities

• Liabilities + Equity = Assets

Net Income Equation

• Expenses - Revenue = Net Income

• Revenues - Expense = Net Income

• Liabilities + Equity = Net Income

Rent Income

• Revenue

• Equity

• Liabilities

• Assets

Fees Earned (Another word for Service Profit )

• Dividends

• Assets

• Equity

• Revenue

Retained Earnings

• Dividend

• Liability

• Equity

• Asset

Common Stock

• Asset

• Revenue

• Equity

• Liabilities

Accounts Payable

• Equity

• Assets

• Liability

• Expenses

Supplies

• Asset

• Dividend

• Revenue

• Liability