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ACCTG 241 Final Exam KSU Questions And Answers
With Complete Solutions 100% Correct Answers
Ethics - (answers)the principles of right and wrong that guide an individual in
making decisions
Historical Cost Principle - (answers)An accounting principle that states that
companies should record assets at their cost.
Economic Entity Assumption - (answers)An assumption that every economic
entity can be separately identified from the activities of its owner and other
entities.
Basic Accounting Equation - (answers)Assets = Liabilities + Stockholders' Equity
Income Statement - (answers)presents the revenues and expenses and resulting
net income or net loss for a specific period of time.
Statement of Cash Flows - (answers)reports the cash effects of a company's
operating, investing, and financing activities.
IFRS vs GAAP - (answers)IFRS tends to be simpler, more "principles based". GAAP
is more detailed, "rules based"
Sales or Revenue: - (answers)Increase with a credit
Dividend - (answers)is not an expense, a return of capital
Why classify balance sheet - (answers)Helps us predict the future
sales discount - (answers)a reduction given by a seller for prompt payment of a
credit sale
Sales Returns and Allowances - (answers)will account for customer returns and
allowances that a business made for product quantity issues.
Income from operations - (answers)gross profit - selling/administrative expenses
ACCTG 241 Final Exam KSU Questions And Answers
With Complete Solutions 100% Correct Answers
Ethics - (answers)the principles of right and wrong that guide an individual in
making decisions
Historical Cost Principle - (answers)An accounting principle that states that
companies should record assets at their cost.
Economic Entity Assumption - (answers)An assumption that every economic
entity can be separately identified from the activities of its owner and other
entities.
Basic Accounting Equation - (answers)Assets = Liabilities + Stockholders' Equity
Income Statement - (answers)presents the revenues and expenses and resulting
net income or net loss for a specific period of time.
Statement of Cash Flows - (answers)reports the cash effects of a company's
operating, investing, and financing activities.
IFRS vs GAAP - (answers)IFRS tends to be simpler, more "principles based". GAAP
is more detailed, "rules based"
Sales or Revenue: - (answers)Increase with a credit
Dividend - (answers)is not an expense, a return of capital
Why classify balance sheet - (answers)Helps us predict the future
sales discount - (answers)a reduction given by a seller for prompt payment of a
credit sale
Sales Returns and Allowances - (answers)will account for customer returns and
allowances that a business made for product quantity issues.
Income from operations - (answers)gross profit - selling/administrative expenses
