WSU ACCOUNTING 230 EXAM 1 2024 WITH 100% CORRECT ANSWER

What are operating activities? - correct answer Transactions related to the primary operations of the company; providing products to customers, utilities, taxes, advertising, wages, rent, and maintenance. What are financing activities? - correct answer Transactions involving external sources of funding. Creditors that loan money. What are investing activities? - correct answer Purchase and sale of long-term investments; land, buildings, equipment, and machinery. How do you calculate the retained earnings statement? - correct answer Revenue - expenses - dividends = retained earnings. Place the following in order: -Statement of Stockholder's Equity -Balance Sheet -Income Statement -Statement of Cash Flows - correct answer 1. Income Statement 2. Statement of Stockholder's Equity 3. Balance Sheet 4. Statement of Cash Flows What is the accounting equation? - correct answer Assets = Liabilities + Stockholder's Equity What is the expanded accounting equation? - correct answer Assets = Liabilities + Revenues - Expenses - Dividends What are the components of the Income Statement? - correct answer Revenues - Expenses = Net Income What are the components of the Statement of Stockholder's Equity? - correct answer Common Stock + Retained Earnings (Net Income - Dividends) = Total Stockholder's Equity What are the components of the Balance Sheet? - correct answer Assets = Liabilities + Stockholder's Equity What are the components of the Statement of Cash Flows? - correct answer Cash from operating, investing, and financing activities. What are examples of asset accounts? - correct answer -Cash -Petty cash -Accounts Receivable -Notes Receivable -Supplies -Inventory -Pre-paid Advertising -Pre-paid Rent -Investments -Land -Buildings -Equipment -Patents -Copyrights -Trademarks -Franchises What are examples of c