ACCOUNTING 211 Liberty University -Accounting 211 Chapter 1-4 fully solved

Accounting 211 Chapter 1-4 Three types of businesses are - correct answer 1. Financing Activities: borrowing or paying back money to lenders and receiving additional funds from stockholders or paying them dividends 2. Investing Activities: buying or selling items such as plant and equipment used in the production of beverages. 3. Operating Activities: the day-to-day process of purchasing raw tea and other ingredients from suppliers, manufacturing beverages, delivering them to customers, collecting cash from customers, and paying suppliers. GAAP stands for - correct answer Generally Accepted Accounting Principles FASB stands for - correct answer Financial Accounting Standards Board What is a CPA - correct answer a. Certified Public Accountant - CPA designation is granted only on completion of requirements specified by the state that issues the license b. Requirements generally include college degree with a specified number of accounting courses, good character, one to five years of professional experience, and successful completion of the CPA exam What is a business transaction - correct answer A transaction is: 1. An exchange of assets or services for assets, services, or promises to pay between a business and one or more external parties to a business or 2. A measurable internal event such as the use of assets in operations