Exam 1: Accounting in Business

The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities.Which of the following transactions could have caused that effect?

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year.Its assets at the beginning of the year were $400,000.At the end of the year assets were worth $450,000.Calculate its return on assets.

The ______________ assumption assumes business will continue operating indefinitely instead of being closed or sold.

The assets of a company total $700,000;the liabilities,$200,000.What are the net assets?

Doc's Ribhouse had beginning equity of $52,000;net income of $35,000,and withdrawals by the owner of $12,000.Calculate the ending equity.

Liabilities are the owner's claim on assets.

Using the accounting equation,equity is equal to ________________________.

Investing activities are the means an organization uses to pay for resources like land,buildings,and equipment to carry out its plans.

Opportunities in accounting include auditing,consulting,market research,and tax planning.

A resource that the owner takes from the company is called a(n):

The financial statement that shows the beginning balance of owner's equity;the changes in equity that resulted from new investments by the owner,net income (or net loss);withdrawals;and the ending balance,is the:

The International Accounting Standards Board (IASB):

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Data for Kennedy Realty are as follows: The owner,Finn Kennedy,withdrew a total of $30,000 for personal use during the year.Using the above data,prepare Kennedy Realty's Statement of Owner's Equity for the year ended December 31.

An exchange of value between two entities that yields a change in the accounting equation is called:

A corporation is:

According to the cost principle,it is necessary for managers to report an approximation of an asset's market value upon purchase.

The Sarbanes-Oxley Act (SOX)does not require public companies to apply both accounting oversight and stringent internal controls.

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

There are three major types of business activities.______________ activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.