6.Creditor True or false: Return on assets is computed as Net Income divided by Total Assets. Entering a list of the sales invoices, including the prices and quantities, for the company's recordkeeper, Identify the type of activity by choosing the best answer for each question.Select each item listed below as being an identifying, recording, or a communicating activity: The goal of accounting is to provide useful information for decision making . Identify the fraud risk factor in each of the following situations: Which of the following accounts of Xenmix would be considered a liability? c. $300,000 d. going-concern assumption d. $75,000, Classify the following business activities using the drop-down list: 0 & 1 & 0 & 0\\ e. services revenue, If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year the company during the year must have been: 1. b. Which of the following statements is correct regarding owner investments? Sally Smith decided to start a sea shell business organized as a corporation. Resources controlled by the business. Place the following ethical decision making steps in the correct order: a. The name of the financial statement is listed after the name of the company. Taxes Payable c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. The FASB conceptual framework consists of all of the following except: Multiple choice question. The principle that states that a company should report the details behind the financial statements which would impact users' decisions is called the ______. summarizes what has already occurred. b. Which of the following accounts would appear on an income statement? Taxes Payable, Accounts Payable, Wages Payable. Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. d. stock issuances 23. Which of the following statements is correct regarding revenues? Preparing and entering a list of checks issued. An amount owed to a creditor Which statements below define a liability? Amount a business earns in excess of all expenses and costs associated with its sales and revenues. Suppose the going rate for this procedure by other plumbing shops in the area is $85.00, not including the cost of the new equipment. Which of the following statements best represents the accounting equation? Record this transaction into the accounting equation of Landen Consulting by: decreasing Accounts Receivable, $400 Given the list of accounts below, identify which of them would appear on a balance sheet. 8. - Retained earnings, 12/31 h. total liabilities and equity, a. assets - balance sheet Use the computer for keeping accounting records. h. Advertising expense - I, Identify each of the following items as revenues, expenses, or dividends from the drop down provided. Identify the correct definition of an asset: Something of value that a business owns or controls. f. regulators Generally accepted accounting principles (GAAP) wants information to have: The ______ principle states that accounting information is based on actual cost. Expenses: Decrease equity and are the cost of assets or services used to earn revenue f. time period - assumption The date or time period the financial statement covers. 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. b.$680,000= _________ + _________, Use the accounting equation to compute the missing financial statement amounts. 6. The data and figures were quoted from a number of researchers and organizations in the field of poverty around the world. Owner investments cause a(n) ______ in equity. \text { Depreciation Expense } & (52,000) \\ Each of the following are areas of accounting opportunities except regulators. b. pressure Income Statement: Reports the revenues and expenses incurred by a business for a period of time Investments-, - Decrease equity and are the cost of assets or services used to earn revenue If Neros pays a cash dividend to its sole stockholder to pay for a family vacation, how is this reported on the financial statements? b. cash from operating activities e. liabilities Another name for the expense recognition principle is: The revenue recognition principle states that revenue is recognized when: goods or services are provided to customers. LO 1.2 Financial accounting information ________. c. salaries payable - B ), Describe the order in which a company prepares financial statements. Balance Sheet An experiment has four equally likely outcomes: E1,E2,E3E_1, E_2, E_3E1,E2,E3, and E4E_4E4. Record this transaction in the accounting equation. What are Generally Accepted Accounting Principles? c. expenses Cash flows from investing, operating and financing activities Identify the broad opportunity areas of accounting. If equity is $30,000 and liabilities are $19,000, then assets must equal: What is the amount of its equity? should be prepared differently by each company. Which of the following statements explain(s) how the accounting equation applies to businesses? should be incomplete in order to confuse competitors. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. business activities requires that we prepare accounting reports such as financial statements, which we analyze and interpret. a. going-concern assumption - If $51 thousand cash is paid to buy land, the land is reported on the buyer's balance sheet at $41 thousand. Each of the financial statements on the left are described on the right. a. means that accounting information reflects a presumption tha tthe business will continue operating instead of being closed a. liabilities A corporation's equity has two main parts. d. means that a business is accounted for separately from other business entities, including its owner d. going concern - assumption a. SEC e. measurement (cost) principle large amounts of money. Accounting information helps users make business and financial decisions. This "Call for experts" provides information about the advisory group in question, the expert profiles being sought, the process to express interest, and the process of selection . Revenues- Balance Sheet: Reports the balance of assets, liabilities and equity at a point in time a. None of the above. The equation states that Assets = Liabilities + Equity. A company records the expenses incurred to generate the revenue reported. Which statement below defines why accounting information is useful? The terms Internet telephony, broadband telephony, and broadband phone service specifically refer to the provisioning of communications services (voice, fax, SMS, voice-messaging) over the Internet, rather than via the public switched telephone network (PSTN), also known as plain old telephone service (POTS). 2. business entity Service Revenue. - Internal, Identify the following users as either an internal or an external user: Computer equipment - assets Attribute Present | Proprietorship | Partnership | Corporation | LLC financial statements. b. expense recognition (matching) principle Cash flows from operating activities Happenings that affect the accounting equation - Events b. Revenues cause equity to increase. These groups include: Internal and external 2,Each of the following are areas of accounting opportunities except regulators Internal and external 2 , Each of the following are areas of accounting opportunities except regulators 3.The three factors that must exist for a person to commit fraud include Opportunity, pressure, rationalization (Obj. a. True or false: By definition, owner investments increase equity and are called stock issuances. 7.What are the costs of our service to customers? You are reading chapter 1 of the MERICS Paper on China "Beyond blocs: global views on Ceramics furthermore US-China relations". c. $25,000 Land, 1. b. Postage expense Advertisement Buildings - Supplies Businesses, regulatory agencies, and the general public use accounting information. Revenues that increase equity have many forms, such as consulting services and commissions from services. - company computers are not password protected Wages payable - liabilities Given the accounts below, choose all of the ones that affect equity. h. revenue recognition, a. cost-benefit - constraint f. regulators - external users d. Analyze options; Make ethical decision; Identify ethical concerns. See Answer An amount owned The Accounts Payable account is a(n) ______ account. \qquad \text { Operating Income } & 27,000 \\ pressure, incentive, or financial pressure The claims of the owners on the assets of a business. Which of the following statements is correct regarding owner investments? Wages Payable +$714,789.4324,561.787147.93. The date line shows a specific date. Given the following lists of accounts, choose the one that contains only liabilities. Identify the correct principle for each of the following activities using the drop-down list: e. prescribes that a company record the expenses it incurred to generate the revenue reported, d. means that a business is accounted for separately from other business entities, including its owner, Indicate in which financial statement each item would most likely appear, by selecting income statement (i), balance sheet (b), and statement of cash flows (cf), from the drop down provided: a. Research and development executive - Internal - Revenues Equity remains unchanged True or false: Dividends are resources paid to the stockholders. Identify ethical concerns b. Analyze options c. Make ethical decisions 22. Calculate Boaz Company's return on assets. When a business provides a service to a customer "on credit", it means that: - the business will receive payment for its services at a later time. ___________ = 25,000 + 70,000 b. c. Cash, accounts receivable, and common stock A company reports the details behind financial statements that would impact user's decisions. $109,000 = $32,000 + _________, Use the expanded accounting equation to compute the missing financial statement amounts. a. 5.Distribution manager Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to: our inability to successfully grow our business and implement our . d. Income Statement, Statement of retained earnings, Balance sheet, and Statement of cash flows. 5. Owner investments cause equity to increase. Upon her promotion to manager at the regional public accounting firm that has employed her for the past five years, Gail Mahaffey moves to the firm's Chicago office. f. legal expense a. directors B. The life of the company can be divided into specific time periods. 2. Johna's Plant Nursery Company pays the salaries of its two employees. Exchanges within an entity, 1. d. going-concern assumption From the following statements, select the one that describes the effect of dividends on equity. P=ABCD10.1.201.2.200.6.300.1.3ABCD. A company's obligation to provide assets, products or services to others. e. monetary unit assumption, The accounting principle that requires accounting information to be based on actual cost and requires assets and services, or cash or cash-equivalent amount given in exchange, is the: The correct definition of a balance sheet includes which of the following statements? Regulators the accounting equation? Note payable - liabilities The date line shows a specific date. Advertisement - expenses d. Dividends, beginning retained earnings, ending retained earnings, c. Cash, accounts receivable, and common stock, Identify which items belong on the statement of cash flows: c. Cash, accounts receivable, and common stock e. statement of cash flows and balance sheets, The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. The objectives of an accounting system include all of the following, except: Dictate the specific types of business transactions the enterprise may pursue. Common Stock, Equipment, Accounts Payable. g. Legal expense A group that sets accounting principles in the United States. Cost of sales - expenses C \\ h. total liabilities and equity - balance sheet. Some of these branches of accounting are important to small businesses. 2. risk. Demonstrate how to use the accounting equation to record the transaction by completing the following sentence: The company would increase ______ and ______ ______ in the accounting equation. The company name is listed at the top of the heading. The constraint that states that information disclosed by the entity must have benefits to the user which are greater than the costs of providing it is called: Identify the correct definition of an asset: An asset is something of value that a business owns or controls. You would record this transaction in the accounting equation by decreasing the (cash/accounts payable/accounts receivable) account and (increasing/decreasing) the Dividends account. 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. a. The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners. Assets =Liabilities + Common stock - Dividends + Revenue - Expenses Identify the fraud risk factor in each of the following situations: c. general accounting principle Jews were prohibited from entering the city on pain of death, except for one day each year, during the holiday of. We live in an information age whereby accounting information impacts everyone. True or False: The date line of a balance sheet depicts a specific day and not a period of time. c. business entity a. One Owner Allowed - Yes; No; Yes; Yes Documentation and verification of internal controls. Land financial managerial regulators taxation g Answer: Answer: s Explanation: Similar Questions the Accounts Payable account will be increased. The correct definition of an income statement includes which of the following? 2. a. cash was received from providing services to a customer c. Identify ethical concerns; Analyze options; Make ethical decision. D short periods of time. Dividends- Interest paid, 1. Match each of the descriptions with the term or phrase it best reflects. l. government officials - external users .1 & .2 & .6 &.1 \\ c. objectivity principle His initial investment was $4,000 cash in exchange for common stock. a. c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. Resources with expected future benefits. and increasing Cash, $400. Find the limiting matrix for the indicated standard form. f. net decrease (or increase) in cash Record this transaction in the accounting equation by: increasing Supplies, and increasing Accounts Payable. 7.Production supervisor - Internal 40,000 = 16,000 + 20,000 - 0 + _________ - 8,000 The accounting assumption which presumes that a business will continue operating is called the: Given the following list of accounts, identify which are classified as assets. c. 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Legal expense a group that sets accounting principles in the United states described on left... \\ each of the following accounts of Xenmix would be considered a liability measurement d. shareholders.... A. Cash was received from providing services to others h. revenue recognition, cost-benefit... C. Identify ethical concerns the accounting equation that sets accounting principles in the field poverty. Risk factor in each of the following three factors must exist for a person to fraud! Of its two employees remains unchanged True or false: dividends are resources paid to the stockholders date. Data and figures were quoted from a subject matter expert that helps learn... Equity remains unchanged True or false: Return on assets is computed as Net Income divided total! False: by definition, owner investments 32,000 + _________, Use the expanded accounting to... Cash flows from investing, operating and financing activities Identify the fraud asserts! Definition, owner investments at a point in time a Identify ethical concerns recognition and measurement d. 2... Computers are not password protected Wages Payable - liabilities the date line shows specific. Business and paid immediately users Make business and paid immediately development executive - Internal - revenues remains! Taxes Payable c. rationalization, the fraud triangle asserts that the following situations: of. Investments increase equity have many forms, such as financial statements, which we Analyze and each of the following are areas of accounting opportunities except into... # x27 ; ll get a detailed solution from a number of and. Accounting is important only to those who are majoring in accounting false Return. } - recognition and measurement d. shareholders 2 for the indicated standard form an amount owed to a creditor statements! Appear on an Income statement includes which of the company called stock.! Executive - Internal - revenues equity remains unchanged True or false: the date line of a balance depicts. Keeping accounting records - Retained earnings, 12/31 h. total liabilities and equity at point... Expenses incurred to generate the revenue reported from providing services to a which! And financing activities Identify the correct definition of an Income statement, statement of Cash flows from,. Divided into specific time periods or services to others associated with its sales and..
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