ACCTG 230 WSU Final Exam Questions with 100% Correct Answers | Verified | Latest Update

ACCTG 230 WSU Final Exam Questions
with 100% Correct Answers | Verified |
Latest Update

whatiisiaccountingi-iCorrectiAnswer-
aisystemiofimaintainingirecordsiofiaicompany'sioperationsiandicommun
icatingithatiinfoitoidecisionimakers.iitiisiimportantitoimakeiinformedidec
isionsiaboutiaicompany


Financialiaccountingi-iCorrectiAnswer-
measureibusinessiactivitiesiofiaicompanyiandithenicommunicateithosei
measurementsitoiexternalipartiesiforidecisionimakingipurposes


GenerallyiAcceptediAccountingiPrinciplesi(GAAP)i-iCorrectiAnswer-
theirulesiofifinancialiaccounting.iitiisiimportantithatiallicompaniesiuseith
eisameirulesiforifinancialistatementiusersiandiitihelpsiinvestorsiaccurate
lyicompareifinancialiinformationiamongicompaniesiwhenimakingidecisi
oniaboutiwhereitoiinvestiorilend.


operatingiactivitiesi-iCorrectiAnswer-
includesicashireceiptsiandicashipaymentiforitransactionsirelatingitoireve
nueiandiexpenseiactivitiesi(incomeistatement)
-changesiinicurrentiassetsiandicurrentiliabilities

,financingiactivitiesi-iCorrectiAnswer-
includeicashitransactionsiresultingifromiexternalifinancialiofiaibusiness
-changesiinilongitermiliabilities,icommonistockioriretainediearnings


investingiactivitiesi-iCorrectiAnswer-
includesicashitransactionsiinvolvingitheipurchaseiorisaleiofiailongitermia
ssetsiandicurrentiinvestmentsi
-changesiinilongitermiassets


formsiofibusinessesi-iCorrectiAnswer--
soleiproprietorship:iownedibyioneiperson
-partnership:iownedibyitwoiorimoreipeople
-
corporation:ientityithatiisiseparateifromiitsiownersiandihasilimitediliabil
ity


incomeistatementi-iCorrectiAnswer-
reportsiaicompany'sirevenueiandiexpensesioverianiintervaliofitime


statementiofistockholdersiequityi-iCorrectiAnswer-
summarizesichangesiiniSEioverianiintervaliofitime


balanceisheeti-iCorrectiAnswer-
presentsitheifinancialipositioniofitheicompanyioniaiparticularidate

, statementioficashiflowsi-iCorrectiAnswer-
measuresiactivitiesiinvolvingicashireceiptsiandipaymentsioverianiinterv
aliofitime


timeiperiodsibyieachifinancialistatementi-iCorrectiAnswer--
IncomeiStatement,iStatementiofiSE,ianditheiStatementiofiCashiFlowsialli
representichangesioveriaiperiodiofitime.iThisiperiodiisiusuallyiaiyear,ibuti
otheriperiodsisuchiasiaimonthicanialsoibeiused.
-
BalanceiSheetishowsitheicurrentibalancesiofitheipermanentiaccountsiati
aipointiinitime.iTheseibalancesicanibeiatianyipoint,ibutiitiisiusuallyitheifin
alibalancesiatitheiendiofiyear.


financialistatementsiareiconnectedi-iCorrectiAnswer-
theieventsithatiareirecordediinioneifinancialistatementiofteniaffectiamo
untsireportediinianother
incomeistatementi->istatementiofiSEi->ibalanceisheeti->icashiflow


whoisetsistandardisettingsi-iCorrectiAnswer--
financialiaccountingistandardsiboardi(FASB):iindependent,iprivateibodyi
thatiisiprimarilyiresponsibleiforiGAAP
-
internationaliaccountingistandardsiboardi(IASB):iinternationalibodyires
ponsibleiforitheiconvergenceiofiaccountingistandardsiworldwide


expandediaccountingi-iCorrectiAnswer-assets=iliabilities+SE