WSU Accounting 230 Exam 1 Questions And Quality Solutions || Error-Free Answers

Accounting Equation - Correct Answer Assets = Liabilities + Equity Assets - Correct Answer Money and other valuables belonging to an individual or business. Liabilities - Correct Answer Debts that you owe Stockholders' Equity - Correct Answer The owners' claim to assets. Common Stock and Retained Earnings Dividends - Correct Answer Earnings distributed to stockholders Financing Activities - Correct Answer Includes cash transactions resulting from the external financing of a business. Creditors that loan money. Operating Activities - Correct Answer Transactions related to the primary operations of the company; providing products to customers, utilities, taxes, advertising, wages, rent, and maintenance. Investing Activities - Correct Answer Purchase and sale of long-term investments; land, buildings, equipment, and machinery. Retained Earnings Calculation - Correct Answer Revenue - Expenses - Dividends Expanded Accounting Equation - Correct Answer Assets=Liabilities + Revenues - Expenses - Dividends Components of Income Statement - Correct Answer Revenue - Expenses = Net Income Components of Statement of Stockholder's Equity - Correct Answer Common Stock + Retained Earnings (Net Income - Dividends) Components of the Balance Sheet - Correct Answer Assets=Liabilities +Stockholders Equity Assets on the left. Liabilities on the right. SE on the right. Components of Statement of Cash Flows - Correct Answer Cash from operating, investing, and financing activities Examples of Asset Accounts - Correct Answer - Cash - Accounts Receivable - Notes Receivable - Supplies - Inventory - Buildings - Land - Pre-Paid things* - Investments - Equipment - Patents - Copyrights - Trademarks - Franchises Examples of Liability Accounts - Correct Answer - Accounts Payable - Notes Payable - Deferred Revenue - Salaries Payable - Int