ACCTG 231 Final –KSU Question and
answers verified to pass 2025/2026
GAAP - correct answer ✔Generally accepted accounting principals
Relevance - correct answer ✔information capability of making a difference in the decision (predictive
value, confirmatory value, materiality)
Faithful Representation - correct answer ✔complete, neutral, and free from error
Business Entity - correct answer ✔Separate entities separate; personal vs business
Historical Cost - correct answer ✔amount at the time of the accounting event
Going Concern - correct answer ✔continue into the future
FOB shipping point - correct answer ✔sale occurs as the goods are shipped
FOB destination point - correct answer ✔sale occurs as the goods are "tendered" to the buyer
Expenditure Cycle - correct answer ✔-determine business's needs for goods/services
-selecting vendors and ordering goods/services
-receiving, securing, and storing goods
-paying for goods and services recieved
Interest Calculation - correct answer ✔principal x annual rate x time = $interest due
, Conversion Cycle - correct answer ✔-scheduling production
-obtaining raw materials
-making products
-storing finished goods
*no cash involved; only manufacturing firm goes through
Qualities of Accounting Events - correct answer ✔-must be specific to entity
-must create or change a right or obligation
-must be capable of measurement or estimation
Accounting Asset - correct answer ✔right to use an economic resource
Accounting Equity - correct answer ✔an obligation to provide economic resources
Assets - correct answer ✔-Cash: currency, savings, checking
-investments
-inventory
-supplies
-prepaids
-equipment
-N/R and A/R
Liabilities - correct answer ✔-A/P
-salary, utility, taxes, and notes payable
answers verified to pass 2025/2026
GAAP - correct answer ✔Generally accepted accounting principals
Relevance - correct answer ✔information capability of making a difference in the decision (predictive
value, confirmatory value, materiality)
Faithful Representation - correct answer ✔complete, neutral, and free from error
Business Entity - correct answer ✔Separate entities separate; personal vs business
Historical Cost - correct answer ✔amount at the time of the accounting event
Going Concern - correct answer ✔continue into the future
FOB shipping point - correct answer ✔sale occurs as the goods are shipped
FOB destination point - correct answer ✔sale occurs as the goods are "tendered" to the buyer
Expenditure Cycle - correct answer ✔-determine business's needs for goods/services
-selecting vendors and ordering goods/services
-receiving, securing, and storing goods
-paying for goods and services recieved
Interest Calculation - correct answer ✔principal x annual rate x time = $interest due
, Conversion Cycle - correct answer ✔-scheduling production
-obtaining raw materials
-making products
-storing finished goods
*no cash involved; only manufacturing firm goes through
Qualities of Accounting Events - correct answer ✔-must be specific to entity
-must create or change a right or obligation
-must be capable of measurement or estimation
Accounting Asset - correct answer ✔right to use an economic resource
Accounting Equity - correct answer ✔an obligation to provide economic resources
Assets - correct answer ✔-Cash: currency, savings, checking
-investments
-inventory
-supplies
-prepaids
-equipment
-N/R and A/R
Liabilities - correct answer ✔-A/P
-salary, utility, taxes, and notes payable
