ACCT 211 Read & Interact Chapter 1 Accounting in Business solutions complete answers

ACCT 211 Read & Interact Chapter 1 Accounting in Business solutions complete answers 

 

Boaz Company had beginning of year assets of $100 million and end of year assets of $120 million. Boaz's net income is $5 million. Calculate Boaz Company's return on assets. Round your answer to 1 decimal place.

 

Sheldon Company had beginning retained earnings of $1,000, net income of $5,000, and dividends of $250. The ending balance in the retained earnings account is

 

Which of the following statements best represents the accounting equation?

 

Jacob's Chocolates had beginning retained earnings of $4,000; net income of $10,000; and dividends of $300, calculate the ending balance in the retained earnings account.

 

An employee that is having trouble paying his personal bills might exhibit the following fraud factor:

 

Generally accepted accounting principles (GAAP) wants information to have: (Check all that apply).

 

The three factors that must exist for a person to commit fraud include __, __, and __. (Check all that apply).

 

Identify what accounting is by selecting the correct statement.

 

A graphical presentation of data to help in understanding their significance is called data  _.

 

Which statement below defines accounting?

 

A(n) _____ user of accounting information does not directly run the organization.

 

A process of analyzing data to identify meaningful relations and trends is called data  _.

 

Match the definition on the left with its correct type of business activity on the right.

 

Boaz Company had beginning of year assets of $100 million and end of year assets of $120 million. Boaz's net income is $5 million. Calculate Boaz Company's return on assets.

 

Identify the three major types of business activities from the lists below.

 

Given that Jacob's Chocolates Company had beginning retained earnings of $4,000; net income during the period of $10,000; and dividends of $300 calculate the ending balance in the retained earnings account.

 

True or false: Return on assets is computed as Net Income divided by Total Assets.

 

The FASB conceptual framework consists of all of the following except:

 

When recording transactions into the accounting equation, which of the following statements are correct? (Check all that apply.)

 

Identify the correct definition of an asset:

 

Users who do not directly run the organization and have limited access to accounting information are known as       (internal/external) users.

 

Generally accepted accounting principles (GAAP) wants information to have:

 

An employee that has unpaid bills might exhibit the following fraud factor:

 

Each of the following are areas of accounting opportunities except

 

Identify which of the following statements is correct as to why accounting is important.

 

If a customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction into the accounting equation by:

 

Which of the following statements below lists the rules of entering transactions into the accounting equation?

 

Describe the order in which a company prepares financial statements.

 

Which of the statement(s) below define(s) an asset? (Check all that apply)

 

Bob’s bakery receives its utility bill of $800 for the month and pays it immediately. Record this transaction in the accounting equation.

 

ABC Co. performs $200 of services for a customer, but does not get paid right away. Demonstrate how ABC Co. would record this transaction in the accounting equation by completing the following sentence. Note: enter one answer for each blank.

 

Jackson’s Catering Company provided cookies worth $3,000 to the local college. The college paid immediately. Record this transaction in Jackson’s accounting equation by:

 

The definition of revenues includes which of the following statements? Check all that apply.

 

The definition of expenses includes which of the following statements? Check all that apply.

 

The four major types of transactions that affect equity in a business are     accounts,     accounts, dividends and common stock. Note: enter one word for each blank.

 

Given the following list of accounts, identify which are classified as assets. Select all that apply.

 

Which of the following statements correctly represents the accounting equation?

 

Which list of accounts below, identifies only accounts that would appear on a balance sheet.

 

Dividends cause a(n)  in equity and are recorded directly in the  account.

 

When a business provides a service to a customer “on credit”, it means that: (Check all that apply)

 

Which of the following statements is/are true regarding the effect of revenues on the equity of a business? (check all that apply.)

 

The Accounts Payable account is a(n) ________ account.

 

Given the statements below, choose the most accurate definition of owner dividends.

 

Each of the financial statements on the left are described on the right. Identify the description that goes with each financial statement.

 

On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. The remainder of the bill went on account. To record this transaction on 6/25: Supplies would be increased by $_______; Cash would be decreased by $______; and Accounts Payable would be increased by $_______.

 

A customer of Landen Consulting Company makes a $400 payment of cash on a bill for services provided last month. Record this transaction into the accounting equation of Landen Consulting by: (Check all that apply)

 

Given the accounts below, choose all of the ones that affect equity. (check all answers that apply.)

 

Which statements below define equity?

 

Melton’s door company pays rent on the building facilities of $5000 on May 1. Show how to record this transaction in the accounting equation of Melton’s door company.

 

Jack pickle decided to start a small business as a corporation. His initial investment was $4,000 cash in exchange for common stock. Demonstrate how to record this transaction in the accounting equation.

 

Which statements below define a liability?

 

Given the statements below, choose the most accurate definition of owner investments.

 

Match each item on the left with its correct definition on the right

 

Bob's Bakery is making a partial payment of $70 for baking supplies it purchased in a previous month. Record this transaction in the accounting equation of Bob's Bakery by decreasing the Accounts ________ account and decreasing the ____ account.

 

Given the following list of accounts, identify which are classified as liabilities.

 

4.
The correct definition of revenues is Revenues ______ ________ equity and are the assets or monies earned from a company's earnings activities.
 
increase equity.
12.
Given the following list of accounts, identify which are classified as an asset

Land 

Supplies

Building

Accounts Receivable

Common Stock

Cash

Dividends

Accounts Payable

Wages Payable
 
 
 
 
 
 
 
 
 
 

14.
how accounting equation applies to businesses
 
 
15.
How do expenses affect equity?


If expenses increase then total equity increases.

if expenses increase, then total equity decreases

higher expenses cause lower total equity
If expenses decrease, then equity will decrease.
 
 
16.
Identifies only accounts that would appear on a balance sheet.
 
 
17.
Identify the expanded accounting equation from the options below.

Assets = Liabilities - Common Stock + Revenue - Expenses - Dividends 

Assets = Liabilities + Common Stock - Dividends + Revenue - Expenses
 
 
18.
Investments
 
 
19.
Jackson's Programming paid its June of $500 cash. demonstrate how to use the accounting equation to record the transaction by completing the following sentence. 

Jackson would decrease _________ and increase ________ in the accounting equation.
 
 
20.
Johna's Plant Nursery Company pays the salaries of its two employees. How will this transaction affect the accounting equation?

Expenses will be decreased.

Equity will be increased.

Equity will be decreased.

Salaries expense will be increased.
 
 
21.
A liability is 


an amount owned to a creditor.

something of value that a business owns.

refers to the claims of a business's owners.
 
 
 
 
 
 
 
 
 

23.
On May 1, Mary's Morsels Company provided catering services at a wedding. The bride is billed $4,000 and will pay during the following month. Record this transaction on May 2 in the accounting equation of Mary's Morsels by:

Increasing Accounts Receivable and Increasing Revenue

Increasing Cash and increasing Revenue

Increasing Accounts Receivable and decreasing Revenue

Increasing Accounts Payable and increasing Revenue
 
 
24.
Reason for the accounting equation?
 
 
25.
Revenues
 
 
26.
Revenues on the equity of a business
 
 
27.
Sally Smith decided to start a sea shell business organized as a corporation. Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. Record this transaction in the accounting equation of the new business by:

Increasing cash; Increasing Expenses.

Increasing Accounts Payable; increasing Revenues.

Increasing Cash; increasing Common Stock.

Decreasing Cash; Increasing Common Stock.
 
 
28.
To record the purchase of supplies for cash, the correct entry into the accounting equation would include an increase to (Equipment/Supplies/Cash) __________ and a decrease to (Equipment/Supplies/Cash).
 
 
29.
True of false: 

By definition, owner investments are cash or other assets that an owner or owners put(s) into the company.
 
 
30.
When a business provides a service to a customer "on credit", it means that:


an asset has been created or increased

the business will receive payment for its services at a later time

the business will be receiving payment for its services immediately.

accounts receivable will be increased
 
 
31.
When supplies are purchased on credit it means that:

The Accounts Payable account will be increased.

The business will pay for the supplies at a later time.

a liability has been incurred.

The business will be paying for the supplies right away.
 
 
32.
When using the accounting equation, recording the purchase of equipment for cash would include an increase to the _________ (Equipment/Supplies/Cash) account and a decrease to the __________ (Equipment/Supplies/Cash) account.
 
 
 
 
 
 
 
 
 

33.
Which of the following statements is correct regarding owner investments?


Owner investments will cause assets to decrease.

Owner investments cause equity to increase.

Owner Investments do not affect equity.

Owner investments cause creditor debt to rise.
 
 
34.
Which of the statement(s) as asset?

Resources controlled by the business

AN amount owed to the owners

Resources with future benefits

An amount owned 

An amount owed to a creditor.
 
 
 

2.
The accounting assumption related to expressing transactions and events in monetary units is called the:
 
 
3.
The accounting assumption related to separating business transactions from the owner's transactions is called the:
 
 
4.
The accounting assumption that presumes the life of a company can be divided into time periods is called the:
 
 
6.
These activities provide the monies needed to pay for resources such as land and buildings. 
These activities are the acquiring and disposing of assets that an organization uses in its business. 
These activities are the every day activities that occur in running a business, selling a product or providing a service.
 
 
7.
All of the following are part of the FASB conceptual framework: (select all that apply).
 
 
8.
A(n) _______ is a business entity legally separate from its owners, also called shareholders.
 
 
9.
A(n) _____ is a business entity owned by one person.
 
 
10.
A(n) _____ is a business owned by two or more partners.
 
 
11.
The area of accounting that serves the decision-making needs of internal users is referred to as _______ accounting.
 
 
12.
Balance Sheet:
Income Statement:
Statement of Retained Earnings
Statement of Cash Flows
 
 
13.
Bob's Bakery is making a partial payment of $70 for baking supplies it purchased in a previous month. Record this transaction in the accounting equation of Bob's Bakery by decreasing the Accounts _______ account and decreasing the _______ account.
 
 
15.
Complete the following statement regarding risk analysis. Higher risk implies higher, but riskier, expected _______.
 
 
16.
A corporation's equity has two main parts. Identify these two parts.
 
 
17.
The correct definition of a balance sheet includes which of the following statements? (Check all that apply)
 
 
18.
The correct definition of revenues is: Revenues _______ (increase/decrease) ____________ (liabilities/equity) and are earned from the sale of products and services.
 
 
19.
A creditor:
 
 
20.
Define what the income statement reports by completing the following sentence: The income statement describes a company's _______ and ______ along with the resulting net income or loss over a period of time due to earnings related activities.
 
 
23.
The Dodd-Frank Act has two notable provisions: Select all that apply:
 
 
24.
During September, Sally's Hair Salon purchased $900 of supplies on account. In October, Sally's wants to make a payment of $200 on this bill. Record the October transaction into Sally's accounting equation by: (Check all that apply)
 
 
25.
Ethics are defined as: (Check all that apply)
 
 
27.
From the following statements, identify the correct definition of a liability.
 
 
28.
From the following statements, identify the correct definition of equity.
 
 
29.
From the following statements, select the one that describes the effect of dividends on equity.
 
 
30.
Given that Jacob's Chocolates Company had beginning retained earnings of $4000; net income during the period of $10000; and dividends of $300 calculate the ending balance in the retained earnings account.
 
 
 
 
 
 
 
 
 
 
 

32.
Given the following lists of accounts, choose the one that contains only assets.
 
 
33.
Given the following lists of accounts, choose the one that contains only liabilities.
 
 
34.
Given the list of accounts below, identify which of them would appear on a balance sheet. (Check all that apply).
 
 
36.
The heading of every financial statement contains several line items. Identify the correct items from the list below. (Check all that apply)
 
 
37.
How would you characterize a company's Accounts Receivable account?
 
 
38.
Identify the items below that reflect the proper heading on a balance sheet. (Check all that apply)
 
 
39.
Identify the main sections on a statement of cash flows. (Check all that apply).
 
 
40.
Identify the roles of the International Accounting Standards Board (IASB) and International Financial Reporting Standards (IFRS) (Check all that apply)
 
 
42.
An income statement reports a company's net income or net loss during a period. Which of the following accounts would appear on an income statement? (Check all that apply)
 
 
43.
In every financial statement, there exists single and double underlines. Choose the statement below that describes what these are for and when to use them.
 
 
44.
An internal user of accounting information is: (Check all that apply.)
 
 
46.
Jackson Company purchased office equipment costing $3000 for his business and paid immediately. Record this transaction in the accounting equation by:
 
 
47.
Johna's Plant Nursery Company pays the salaries of its two employees. How will this transaction affect the accounting equation? Select all that apply.
 
 
49.
Net income is calculated using the following formula: ______ - _______ = Net income. Use one word for each blank
 
 
50.
On 8/1, supplies costing $500 were purchased on credit. Record this transaction in the accounting equation by:
 
 
 
 
 
 
 
 
 

51.
Other names for equity in a corporation include:
 
 
52.
Owner investments cause a(n) (increase or decrease) in equity.
 
 
53.
The principle which states that a company should record expenses it incurred in the same period as the revenue it generated is known as the
 
 
54.
A (proprietorship/partnership/corporation/LLC) ________ is a business entity legally separate from its owners who are referred to as members.
 
 
55.
Russell's Consulting Services Company provided $1000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. Record this transaction in the accounting equation for Russell's Consulting Service by:
 
 
56.
Select internal users of accounting information from the choices below. (Check all that apply)
 
 
57.
Select the account that would be decreased if Hillary's Hair Salon decides to pay $40 cash dividends to its shareholders.
 
 
58.
Smith Company purchased $100 of supplies for her business and paid immediately. She would record this transaction in the accounting equation by which of the following?
 
 
59.
The statement of retained earnings explains changes in equity from net income (or loss) and from any _____ over a period of time. (Select the accounts below which will correctly complete this question)
 
 
60.
This area of accounting includes offering tax advice and auditing services. 
Accounting specialists in this area of accounting are highly regarded. 
This area of accounting is where employees work for businesses.
 
 
61.
The three factors that must exist for a person to commit fraud include _______, ________, and _______.
 
 
62.
The three sections of the statement of cash flows includes all of the following:
 
 
63.
True of False: The date line of a balance sheet depicts a specific day and not a period of time.
 
 
64.
True or false: Dividends are resources paid to the stockholders.
 
 
65.
What are generally accepted accounting principles?
 
 
66.
What is the total accounting equation for assets?
 
 
67.
When recording transactions into the accounting equation, which of the following statements are correct? (Check all that apply)
 
 
68.
When supplies are purchased on credit it means that: (Check all that apply.)
 
 
70.
Which of the following correctly depicts the accounting equation?
 
 
73.
Which of the following statements describes the effect of expenses on equity?
 
 
 
 
 
 
 
 
 

74.
Which of the following statements explain(s) how the accounting equation applies to businesses? (Check all that apply.)
 
 
75.
Which of the following statements is correct regarding revenues?
 
 
77.
Which statement below defines why accounting information is useful?
 
 
 

2.
The accounting assumption which presumes that a business will continue operating indefinitely is called the:
 
 
4.
All of the following are part of the FASB conceptual framework EXCEPT:
recognition, objectives, measurement, qualitative characteristics, principles, elements
 
 
5.
The area of accounting that serves the needs of internal users is referred to as _______ accounting
 
 
6.
Bakery Company receives its utility bill of $800 for the month and pays it immediately. Record this transaction in the accounting equation
 
 
7.
Balance sheet
 
 
8.
Both public and private accounting
 
 
9.
Buying and selling of long-term assets such as land and equipment would be included in the ________ activities section of the Statement of Cash Flows
 
 
10.
A corporation's equity has two main parts:
 
 
11.
The correct definition of a balance sheet includes what statements?
 
 
12.
A customer of Landen Consulting makes $400 payment of cash on a bill for services provided last month. Record this transaction into the accounting equation of Landen Consulting by:
 
 
13.
Define a liability.
 
 
14.
Define equity.
 
 
15.
Define equity.
 
 
16.
Define owner investments.
 
 
18.
Describe the effect of expenses on equity.
 
 
22.
The Dodd-Frank Act was passed to:
 
 
23.
The equity of a corporation consists of retained earnings and _______ capital
 
 
24.
Ethics can be defined as:
 
 
26.
Expenses
 
 
27.
Financial accounting provides external users with
 
 
28.
The four major types of transactions that effect equity in a business are....
 
 
29.
The full disclosure principle can be summarized by which of the following statements?
 
 
 
 
 
 
 
 
 
 
 

31.
Given the list of accounts below, identify which of them would appear on a balance sheet:
Utilities Expense, Rent Expense, Equipment, Cash, Rental Revenue, Accounts Payable, Retained Earnings, Supplies
 
 
32.
Given the list of accounts, identify which are classified as liabilities:
Owner's Withdrawals, Accounts Payable, Cash, Wages Payable, Notes payable, Accounts Receivable, Taxes Payable, Owner's Capital
 
 
33.
The heading of every financial statement contains several line items. Identify those items
 
 
34.
How would you characterize a company's Accounts Receivable account?
 
 
35.
Identify some of the reasons why Congress passed the Sarbanes-Oxly Act
 
 
36.
Identify which would belong on the statement of retained earnings
 
 
38.
Income statement
 
 
39.
An income statement reports a company's net income or net loss during a period. What would appear on an income statement?
 
 
40.
In every financial statement, there exists single and double underlines. What are these and when do you use them?
 
 
41.
Investments
 
 
42.
A _______ is a business entity legally separate from its owners, also called shareholders.
 
 
43.
A __________ is a business entity owned by one person
 
 
44.
A __________ is a business owned by two or more people
 
 
46.
Johna's Plant Nursery pays the salaries of its two employees. How will this transaction affect the accounting equation?
 
 
47.
Net income is calculated using what formula
 
 
49.
On May 1, Morsels Company provided catering services at a wedding. The bride is billed $4000 and will pay during the following month. Record this transaction on May 1 in the accounting equation
 
 
50.
Owner investments cause a(n) _______ in equity and are entered directly in the _________ account.
 
 
51.
Private Accounting
 
 
 
 
 
 
 
 
 

52.
Public Accounting
 
 
53.
Revenues
 
 
54.
Russell's Consulting Services provided $1000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. Record this transaction in the accounting equation
 
 
55.
Select the account that would be decreased if the owner of H Hair Salon Company decides to pay $40 cash dividends to its shareholders.
 
 
56.
Statement of cash flows
 
 
57.
Statement of retained earnings
 
 
58.
The statement of retained earnings explains changes in equity from net income (or loss) and from any _______ and _______ over a period of time.
 
 
60.
To record the purchase of supplies for cash, the correct entry into the accounting equation would include an increase to _________ and a decrease to ________.
 
 
61.
Users of accounting information can be divided into two main groups. These groups include:
 
 
62.
What is a shareholder?
 
 
63.
What is the expense recognition principle?
 
 
64.
What is the meaning of the measurement principle?
 
 
65.
What is the most accurate definition of dividends?
 
 
66.
What statements are true regarding the revenue recognition principle?
 
 
67.
When recording transactions into the accounting equation, which of the following statements are correct?
a) cash must always equal Owner's Equity
b) the accounting equation must always remain in balance
c) at least two accounts will be affected when recording a transaction
d) after recording the transaction, total assets will always equal total liabilities plus equity
e) expenses are listed on the right side of the accounting equation and will increase the equity account
 
 
68.
When using the accounting equation, recording the purchase of equipment for cash would include an increase to the ________ account and a decrease to the ________ account.
 
 
69.
Which is correct regarding revenues
 
 
70.
Which of the following correctly depicts the accounting equation?
 
 
71.
Which of the following statements explain how the accounting equation applies to businesses?
 
 
 
 
 
 
 
 
 

72.
Which organization has the ultimate authority to create Generally Accepted Accounting Principles?
 
 
74.
Who are internal users of accounting information?
 
 
75.
Why does a business need accounting information?
 
 
76.
Why is accounting important?
 
 
 

Which of the following statements is correct regarding owner investments?

 

The four major types of transactions that affect equity in a business are dividends and common stock. Note: enter one word for each blank. Do not use the word “account” or “accounts” in your answer.

 

Identify the expanded accounting equation from the options below.

 

Russell’s consulting services company provided 1,000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. Record this transaction in the accounting equation for Russell’s consulting services by:

 

 

On May 1, Mary’s morsels company provided catering services at a wedding. The bride is billed $4000 and will pay during the following month. Record this transaction on May 1 in the accounting equation at Mary’s morsels by:

 

During September, sally’s hair salon purchased $900 of supplies on account. In October Sally’s wants to make a payment of $200 on this bill. Record the October transaction into sally’s accounting equation by: (Check all that apply.)

 

Dividends of $60 cash are paid to the corporation’s stockholders. You would record this transaction in the accounting equation by decreasing the  account and  the dividends account.

 

Johna’s plant nursery company pays the salaries of its two employees. How will this transaction affect the accounting equation? Select all that apply.

 

Which of the following statements below list the rules of entering transactions into the accounting equation?

 

Smith company purchased $100 of supplies for her business and paid immediately. She would record this transaction in the accounting equation by which of the following?

 

Jackson company purchased office equipment costing $3000 for his business and paid immediately. Record this transaction in the accounting equation by:

 

The account payable is a(n) account.

 

On 8/1, supplies costing $500 were purchased on credit, record this transaction in the accounting equation by:

 

Jackson would decrease and increase  in the accounting equation.

 

Given the list of accounts below, identify which of them would appear on a balance sheet. (Check all that apply.)

 

 

From the following statements, identify the correct definition of equity.

 

From the following statements, identify the correct definition of a liability.

 

From the following statements, identify the correct definition of an asset.

 

Match the statements on the left with whether they apply to private accounting, public accounting or both.

 

Which of the following statements represent(s) how expenses affect equity? (check all that apply.)

 

Define the order I which a company prepares financial statements.

 

Given the following list accounts, identify which are classified as assets. Select all that apply.

 

dividends are resources paid to the stockholders.

 

Owner investments cause a(n)  in equity and are entered directly in the account.

 

Net income is calculate using the following formula:

 

Match the definition on the left with is correct type of business activity on the right

 

The three that must exist for a person to commit fraud include

 

A corporation’s equity has two main parts. Identify these two parts.

 

Identify which of the following statement(s) is (are) correct as to why accounting is important. (check all that apply.)

 

by definition, owner investments are cash or other assets that an owner or owners contributes to the company.

 

The three sections of the statement of cash flow includes all of the following:

 

The correct definition of an income statement includes which of the following?

 

The area of accounting that serves the decision-making needs of internal users is referred to as

 

Which statement(s) below define(s) why accounting information is useful? (check all that apply.)

 

The accounting assumption related to expressing transactions and events in monetary unit is called the:

 

A  is a separate entity separate with the same rights as a person.

 

Which organization has the legal authority to create generally accepted accounting principles?

 

The correct definition of a balance sheet includes which of the following statements? (Check all that apply.)

 

A  is a business entity owned by one person.

 

An internal user of accounting information is: (check all that apply.)

 

The accounting assumption that presumes the life of a company can be divided into time periods is called the:

 

A is a business owned by two or more people.

 

Select internal users of accounting information from the choices below. (check all that apply.)

 

Other names for equity in a corporation include:

 

Complete the following statement regarding risk analysis.

 

Higher risk implies higher, but riskier, expected

 

Select the statement below which is true regarding risk as it pertains to business and accounting.

 

Identify the roles of the international accounting standards boards(IASB) and international financial reporting standards (IFRS). (Check all that apply.)  

 

Users of accounting information can be divided into two main groups. These groups include:

 

Identify the items below that reflect the proper heading on a balance sheet. (check all that apply.)

 

Given the Jacob’s chocolates company had beginning retained earnings of 4,000; net income during the period of $10,000; and dividends of $300 calculate the ending balance in the retained earnings account.

 

the date line of a balance sheet depicts a specific day and not a period time.

 

Identify some of the reasons why congress passed the Sarbanes-Oxley Act. (check all that apply.)

 

Identify the broad opportunity areas of accounting. (check all that apply.)

 

The statement of retained earnings explains changes in equity from net income (or loss) and from any over a period at time. (Select the accounts below which will correctly complete this question.)

 

The heading of every financial statement contains several line items. Identify the correct items from the list below. (check all that apply.)

 

In every financial statement, there exists single and double underlines. Choose the statement below that describes what these are for and when to use them.

 

Identify which of the following lists of accounts would belong on the statement of retained earnings.

 

An income statement reports a company’s net income or net loss during a period. Which of the following accounts would appear on an income statement? (Check all that apply.)

 

A creditor:  

 

Identify the main section on a statement of cash flows. (check all that apply.)

 

The accounting assumption which presumes that a business will continue operating is called the:

 

Select the statement that best defines “return” when used in business and accounting.

 

Ethics are defined as: (Check all that apply.)

 

The Dodd-frank act was passed to: select all that apply.

 

What are generally accepted accounting principles?

 

What is a shareholder?

 

The accounting assumption related to separating business transactions from the owner’s transaction is called the:

 

 

 

Which of the following statements BEST represents the reason for the accounting equation?

 

Which of the statements below represents the accounting equation?

 

From the following statements, identify the correct definition of an asset.

 

Given the following lists of accounts, choose the one that contains only assets.

 

From the following statements, identify the correct definition of a liability.

 

Given the following lists of accounts, choose the one that contains only liabilities.

 

From the following statements, identify the correct definition of equity.

 

By definition, owner investments are cash or other assets that an owner or owners put(s) into the company.

 

From the following statements, select the one that describes the effect of dividends on equity.

 

Dividends are resources paid to the stockholders.

 

 

Which of the following statements is correct regarding the revenues?

 

The correct definition of revenues is Revenues and are the assets or monies earned from a company’s earnings activities.

 

Identify the expanded accounting equation from the options below.

 

Select the account that would be decreased if Hillary’s Hair Salon decides to pay $40 cash dividends to its shareholders.

 

During September, Sally’s Hair Salon purchased $900 of supplies on account. In October, Sally’s wants to make a payment of $200 on this bill. Record the October transaction into Sally’s accounting equation by (Check all that apply)

 

Dividends of $60 cash are paid to the corporation’s stockholders. You would record this transaction in the accounting equation by decreasing the ____ account and _____ the Dividends account.

 

How would you characterize a company’s Accounts Receivable account?

 

Buying and selling of long-term assets such as land and equipment would be included in the  activities section of the Statement of Cash Flows.

 

Given the list of accounts below, identify which of them would appear on a balance sheet. (Check all that apply)

 

On 8/1, supplies costing $500 were purchased on credit. Record this transaction in the accounting equation by:

 

Identify the importance of accounting by selecting the statement(s) that is (are) correct below. (Check all that apply)

 

The correct definition of an income statement includes which of the following?

 

A corporation’s equity has two main parts. Identify these two parts.

 

Recall how to calculate net income using the following information:

 

A  is a business owned by two or more people.

 

Sally Smith decided to start a sea shell business organized as a corporation. Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. Record this transaction in the accounting equation of the new business by: