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Exam 1: Accounting in Business

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Question 81

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Describe the three types of activities reported on the statement of cash flows.

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The three types of activities reported i...

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Question 82

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For each of the following transactions,identify the effects as reflected in the accounting equation.Use "+" to indicate an increase and "-" to indicate a decrease.Use "A","L",and "E" to indicate assets,liabilities,and equity,respectively.Part A has been completed as an example.

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a.+A; +E
b.+A; +L
c....

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Question 83

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The accounts of Odie Company with the increases or decreases that occurred during the past year are as follows: Except for net income,an investment of $3,000 by stockholders,and a cash dividend of $11,000 to stockholders,no other items affected stockholders' equity.Using the balance sheet equation,compute net income for the past year.

Which of the following combinations results in a net loss reported on the income statement?

You are reviewing the accounting records of Buddy's Foreign Automotive,owned by a single stockholder,Bruce Jones.You have uncovered the following situations.List the appropriate accounting principle related to each independent scenario and suggest a correct action for each. 1.In August,a check for $500 was written to Community Sports.This amount represents soccer camp for his daughter Cassie. 2.Bruce plans a Going Out of Business Sale for June,since he will be closing the business for a month-long vacation in July.He plans to reopen August 1 and will continue operating Buddy's Foreign Automotive indefinitely. 3.Buddy received a shipment of tools from Ontario,Canada.The invoice was stated in Canadian dollars. 4.Sandy Lane paid $1,500 for a major repair services.The amount was recorded as revenue.The parts for the repair must be ordered from overseas and the service won't be complete until the following month.

There are three major types of business activities.________ activities are the means organizations use to pay for resources such as land,building,and equipment to carry out plans.

As a general rule,revenues should not be recognized in the accounting records when earned,but rather when cash is received.

Saddleback Company paid off $30,000 of its accounts payable in cash.What would be the effects of this transaction on the accounting equation?

All of the following are external users of accounting information except:

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

Identify the four basic forms of business organizations and their key attributes.

Identify and describe the two main groups involved in establishing generally accepted accounting principles.

Which of the following accounts is not included in the liability section of the balance sheet?

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

Recordkeeping,or bookkeeping,is the recording of transactions and events,either manually or electronically.This is just one part of accounting.

If a company has excess space in its building that it rents to another company for $700,what is the effect on the accounting equation during the first month?

Stockholder investments increase equity via net income.

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

Resources such as cash distributed to stockholders by the business are called ________.