Exam 1: Introduction to Accounting and Business

On May 7, Carpet Barn Company offered to pay $83,000 for land that had a selling price of $105,000. On May 15, Carpet Barn accepted a counteroffer of $95,000. On June 5, the land was assessed at a value of $115,000 for property tax purposes. On December 10, Carpet Barn Company was offered $135,000 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?

Which of the following financial statements reports information as of a specific date?

The balance sheet represents the accounting equation.

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Used by large business

Which of the following are guidelines for behaving ethically? I. Identify the consequences of a decision and its effect on others. II) Consider your obligations and responsibilities to those affected by the decision. III) Identify your decision based on personal standards of honesty and fairness.

A summary of cash flows for Linda's Design Services for the year ended December 31 is shown below. Prepare a statement of cash flows for Linda's Design Services for the year ended December 31.

A business is an organization in which basic resources or inputs, like materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers.

Which of the following is a manufacturing business?

Liabilities are reported on the

There are four transactions that affect stockholders' equity. a) What are the two types of transactions that increase stockholders' equity? b) What are the two types of transactions that decrease stockholders' equity?

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Received cash for providing services to customers

The Austin Land Company sold land for $85,000 in cash. The land was originally purchased for $65,000. At the time of the sale, $40,000 was still owed to Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation.

Companies like Enron, WorldCom, and Tyco International, Ltd. have been caught in the midst of ethical lapses that led to fines, firings, and criminal and/or civil prosecution. List and briefly describe three factors that are responsible for what went wrong in these companies.

The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.