Exam 1: The Role of Accounting in Business

Financing activities_____ .

Following are the financial statement data for Degen Temporary Services at December 31, 2016.Prepare Degen's income statement. Accounts Payable \ 850 Accounts Receivable 780 Cash 425 Common Stock 600 Dividends 200 Insurance Expense 75 Office Equipment 1,500 Retained Earnings, January 1, 2016 370 Salaries Expense 525 Notes Payable 40 Service Revenue 1,750 Inventory 35 Supplies Expense 50 ? Degen Temporary Services Income Statement For the Year Ended December 31, 2016

If there was no beginning retained earnings, net income of $30,300, and ending retained earnings of $8,000, how much were dividends?

Hofnim, Inc.had the following account balances on September 30, 2016.What is Hofnim's net income for the month of September? Accounts Payable \ 9,900 Capital Stock 15,000 Cash 19,600 Equipment 19,100 Fees Earned 64,000 Miscellaneous Expense 19,700 Rent Expense 5,100 Retained Earnings 5,000 Wages Expense 16,450

Cash collected from sales during the normal course of business would be an example of which type of business activity?

A return on assets of 5.15% means that a company is earning:

Which of the following is the correct order for preparing financial statements?

Under a _____, a business designs products that possess unique attributes or characteristics for which customers are willing to pay more.

Which of the following statements is true about a limited liability company?

A partnership is owned by two or more individuals.

On May 31, 2016, Deana's Services Company had account balances as follows: Accounts payable \ 9,900 Accounts receivable 26,950 Cash 11,390 Fees earned 70,800 Insurance expense 1,475 Land 74,400 Miscellaneous expense 1,510 Prepaid insurance 2,000 Rent expense 8,000 Salary expense 35,300 Dividends 15,100 Supplies 950 Supplies expense 825 Utilities expense 3,800 Capital stock 81,000 Retained earnings (beginning balance on May 1, 2016) 20,000 Present, in good form, (a) an income statement for May, (b) a statement of shareholders' equity for May, and (c) a balance sheet as of May 31.

A corporation is a business that is legally separate and distinct from its owners.

Manufacturing businesses change basic inputs into products that are sold to individual customers.

Classify the following as an asset, liability, revenue, or expense. (1)Unearned revenue (2)Office equipment (3)Wages payable (4)Salary expense (5)Dividends payable (6)Art fees earned (7)Prepaid rent (8)Accounts receivable (9)Income tax expense (10)Office supplies

Name and describe the three forms of businesses and their advantages and disadvantages (if any).

The ownership of a proprietorship is divided into shares of stock owned by its stockholders.

For each of the following companies, identify whether it is a service, merchandising, or manufacturing business. A. Dillards B. Time Warner Cable C. Kohl's D. Ford Motor Co. E. Applebee's F. Sylvania G. Best Buy H. GAP I. H \& R Block

The role of accounting in business is best defined as:

In the case of a failing company, the first claim to the company's assets lies with:

A financial statement that summarizes the cash receipts and cash payments of a company for a specific period of time is: