ACCT 330 INTERMEDIATE
ACCOUNTING 1; EXAM 1 QUESTIONS
AND CORRECT DETAILED ANSWERS
(ALREADY GRADED A+)
1 statement approach - correct answer-
comprehensive income statement
regular income statement and then add unrealized stuff
2 statement approach - correct answer-
comprehensive income statement
income statement
+ separate comprehensive income statement
account - correct answer- a systematic
arrangement that shows the effect of transactions and
other events on a specific element
account format - correct answer- normal
representation of balance sheet format
A, L, and OE all above the other
,accounting cycle - correct answer-
identification and measurement of transactions and other
events
journalization
posting
(trial balance)
adjustments
(adjusted trial balance)
statement preparation
closing
(post-closing trial balance)
optional: reversing entries
accounting standards - correct answer- present
information: fairly, completely, and clearly
comparison
,accruals - correct answer- types of adjusting
entries
Accrued Revenues
Accrued Expenses
(not yet)
additional paid in capital - correct answer- the
excess of amounts paid in over the par or stated value
OE
additional sources - correct answer- Presidents
Letter, Prospectus, SEC filings, news release, financial
forecast, environmental, non financial
adjusting entries - correct answer- entries
made at the end of an accounting period to bring all
accounts up to date on an accrual basis, sot hat the
company can prepare correct financial statements
adjusting entries: reasons - correct answer-
follows the revenue and expense recognition principles!!
, often prepared after BS date, but dated at the BS date
1. some events are not journalized daily b/c it is not
expedient
2. some costs are not journalized during the time b/c they
expire with time not daily
3. some items are just unrecorded
Agenda
Research
Public Hearing
Exposure Draft
Final GAAP standard is issued - correct answer-
Due Process
AICPA - correct answer- now, no impact on
regulations
administers the test
Committee on Accounting Procedures: then, solved
problem by problem, then...
ACCOUNTING 1; EXAM 1 QUESTIONS
AND CORRECT DETAILED ANSWERS
(ALREADY GRADED A+)
1 statement approach - correct answer-
comprehensive income statement
regular income statement and then add unrealized stuff
2 statement approach - correct answer-
comprehensive income statement
income statement
+ separate comprehensive income statement
account - correct answer- a systematic
arrangement that shows the effect of transactions and
other events on a specific element
account format - correct answer- normal
representation of balance sheet format
A, L, and OE all above the other
,accounting cycle - correct answer-
identification and measurement of transactions and other
events
journalization
posting
(trial balance)
adjustments
(adjusted trial balance)
statement preparation
closing
(post-closing trial balance)
optional: reversing entries
accounting standards - correct answer- present
information: fairly, completely, and clearly
comparison
,accruals - correct answer- types of adjusting
entries
Accrued Revenues
Accrued Expenses
(not yet)
additional paid in capital - correct answer- the
excess of amounts paid in over the par or stated value
OE
additional sources - correct answer- Presidents
Letter, Prospectus, SEC filings, news release, financial
forecast, environmental, non financial
adjusting entries - correct answer- entries
made at the end of an accounting period to bring all
accounts up to date on an accrual basis, sot hat the
company can prepare correct financial statements
adjusting entries: reasons - correct answer-
follows the revenue and expense recognition principles!!
, often prepared after BS date, but dated at the BS date
1. some events are not journalized daily b/c it is not
expedient
2. some costs are not journalized during the time b/c they
expire with time not daily
3. some items are just unrecorded
Agenda
Research
Public Hearing
Exposure Draft
Final GAAP standard is issued - correct answer-
Due Process
AICPA - correct answer- now, no impact on
regulations
administers the test
Committee on Accounting Procedures: then, solved
problem by problem, then...
