FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: An Introduction to Accounting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Essay

Review LaterAdd Note

Review Later

What is meant by the term "accounting period?"

Correct Answer

verified

An accounting period is the sp...

View Answer

Show Answer

Question 2

Essay

Review LaterAdd Note

Review Later

What does a company's statement of cash flows tell you about the company?

Correct Answer

verified

The statement of cash flows te...

View Answer

Show Answer

Question 3

True/False

Review LaterAdd Note

Liabilities represent the future obligations of a business entity.

Garrison Company acquired $23,000 by issuing common stock. Which of the following choices accurately reflects how this event affects the company's financial statements?

Robertson Company paid $1,850 cash for rent expense. As a result of this business event:

Which of the following could represent the effects of an asset exchange transaction on a company's financial statements?

Stockholders' equity is a source of a business's assets, but liabilities are not.

An asset use transaction does not affect the total amount of claims to a company's assets.

If Ballard Company reported assets of $500 and liabilities of $200, Ballard's stockholders' equity equals:

During Year 2, Chico Company earned $3,500 of cash revenue, paid $1,450 of cash expenses, and paid a $950 cash dividend to its stockholders. Based on this information alone, which of the following statements is not true?

Jackson Company had a net increase in cash from operating activities of $11,400 and a net decrease in cash from financing activities of $4,000. If the beginning and ending cash balances for the company were $5,000 and $10,600, respectively, what is the net cash change from investing activities?

Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Wooden Wheels. Jack transferred $650,000 of the cash he borrowed to Wooden Wheels on the first day of the year. Which of the following appropriately reflects the cash transactions between these reporting entities? $\begin{array}{cccc} \text { option } & \text {Jack Henry } &\quad\text { wooden wheels } & \text { walt bank }\\\end{array}$ A. $\begin{array}{ccc} &\quad\quad\quad\$ 150,000 \text { increase } &\$ 650,000&\quad\quad\$800,000\\&& \text { increase } &\quad\quad \text { decrease }\\\end{array}$ B. $\begin{array}{ccc} &\quad\quad\quad\text { \$ 800, 000 increase } & \text { \$ } 650,000 & \$150,000 \\&& \text { increase } & \text { decrease } \\\end{array}$ C. $\begin{array}{ccc} &\quad\quad\quad\text { \$ } 800,000 \text { decrease } & \$ 800,000 & \$ 650,000 \\&& \text { increase } & \text { decreas } \\\end{array}$ D. $\begin{array}{ccc} &\quad\quad\quad\text { \$ 650,000 increase } & \$ 150,000 & \$ 800,000\\&& \text { increase } & \text { decreas } \end{array}$

Which of the following would appear in the investing activities section of the statement of cash flows?

Fieldstone Company was founded on January 1, Year 1. During Year 1, the company experienced the following events: Received cash revenue of $25,500Paid cash expenses of $20,000Issued common stock for $30,000 cashPaid cash dividend of $2,000 to stockholders. Required: Write an accounting equation and record effects of each accounting event under appropriate general ledger account headings, showing dollar amounts of increases and decreases and totals at the end of the year. Enter 0 for items not affected.Prepare the Year 1 income statement and balance sheet for Fieldstone Company.

Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $4,800 cash from issuing common stock.2) Borrowed $3,100 from a bank.3) Earned $4,000 of revenues.4) Incurred $2,580 in expenses.5) Paid dividends of $580.Lexington Company engaged in the following transactions during Year 2:1) Acquired an additional $1,400 cash from the issue of common stock.2) Repaid $1,930 of its debt to the bank.3) Earned revenues, $5,400.4) Incurred expenses of $3,110.5) Paid dividends of $1,720. Total liabilities on Lexington's balance sheet at the end of Year 1 equal:

Indicate how this event affects the accounting equation. Use the following letters to record your answer in the box shown below each element. If an event increases one account and decreases another account within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter amounts.Increase = I Decrease = D Not Affected = NABell Company provided consulting services for $20,000 cash.

Ellen Gatsby and her siblings, Ben and Sarah, started Gatsby Company when they each invested $100,000 in the company. After the investments there will be

An asset source transaction increases a business's assets and the claims to assets.

The year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets = $50,000; Liabilities = ?; Common Stock = $15,000; Revenue = $22,000; Dividends = $1,500; Beginning Retained Earnings = $3,500; Ending Retained Earnings = $7,500. The amount of liabilities reported on the end-of-period balance sheet was:

Glavine Company repaid a bank loan with cash. How should the cash flow from this event be shown on the horizontal financial statements model?