©THEBRIGHT EXAM SOLUTIONS
11/7/2024 12:35 PM
WSU Accounting 230 Exam 1 Study Guide.
Accounting Equation - answer✔Assets = Liabilities + Equity
Assets - answer✔Money and other valuables belonging to an individual or business.
Liabilities - answer✔Debts that you owe
Stockholders' Equity - answer✔The owners' claim to assets.
Common Stock and Retained Earnings
Dividends - answer✔Earnings distributed to stockholders
Financing Activities - answer✔Includes cash transactions resulting from the external financing
of a business.
Creditors that loan money.
Operating Activities - answer✔Transactions related to the primary operations of the company;
providing products to customers, utilities, taxes, advertising, wages, rent, and maintenance.
Investing Activities - answer✔Purchase and sale of long-term investments; land, buildings,
equipment, and machinery.
Retained Earnings Calculation - answer✔Revenue - Expenses - Dividends
Expanded Accounting Equation - answer✔Assets=Liabilities + Revenues - Expenses - Dividends
Components of Income Statement - answer✔Revenue - Expenses = Net Income
Components of Statement of Stockholder's Equity - answer✔Common Stock + Retained
Earnings (Net Income - Dividends)
Components of the Balance Sheet - answer✔Assets=Liabilities +Stockholders Equity
11/7/2024 12:35 PM
WSU Accounting 230 Exam 1 Study Guide.
Accounting Equation - answer✔Assets = Liabilities + Equity
Assets - answer✔Money and other valuables belonging to an individual or business.
Liabilities - answer✔Debts that you owe
Stockholders' Equity - answer✔The owners' claim to assets.
Common Stock and Retained Earnings
Dividends - answer✔Earnings distributed to stockholders
Financing Activities - answer✔Includes cash transactions resulting from the external financing
of a business.
Creditors that loan money.
Operating Activities - answer✔Transactions related to the primary operations of the company;
providing products to customers, utilities, taxes, advertising, wages, rent, and maintenance.
Investing Activities - answer✔Purchase and sale of long-term investments; land, buildings,
equipment, and machinery.
Retained Earnings Calculation - answer✔Revenue - Expenses - Dividends
Expanded Accounting Equation - answer✔Assets=Liabilities + Revenues - Expenses - Dividends
Components of Income Statement - answer✔Revenue - Expenses = Net Income
Components of Statement of Stockholder's Equity - answer✔Common Stock + Retained
Earnings (Net Income - Dividends)
Components of the Balance Sheet - answer✔Assets=Liabilities +Stockholders Equity
