Exam 1: Accounting As a Form of Communication

Read the information for Taryn Corporation. Determine the following amounts for Taryn Corporation. A The balance of retained earnings at the end of 2014. B The total stockholders' equity at the end of 2014. C Name the two events that might cause stockholders' equity to increase.

What is the correct method for calculating working capital?

Under Armour is an example of a service provider.

Three organizations important to accounting are listed below. Select the organization that most closely achieves the role described. -An agency of the federal government.

Investing activities are needed to provide the funds to start a business.

Match the following characteristics with the statements about each qualitative characteristic's importance. -Users must be able to compare accounting information of a firm with its prior year information.

The following information is available from the records of Focus Seascapes, Inc. at the end of the 2014 calendar year: Required: 1 What is Focus' net income for the year ended December 31, 2014? 2 What is Focus' retained earnings balance for the year ended December 31, 2014?

Which one of the following statements is true concerning assets?

The preparation of financial statements requires that the information be understandable:

From the following choices, select the answer that describes the effect on working capital as a result of the transaction. -Paid cash for supplies

Guinther & Sons, Inc. Guinther & Sons, Inc. a retailer of men's clothing, earned a net profit of $77,000 for 2014. The balance sheet for Guinther & Sons includes the following items: -Read the information for Guinther & Sons. Calculate the total amount of current assets for Guinther & Sons.

Marcos Inc. had net income for 2014 of $40,000. It declared and paid a $3,500 cash dividend in 2014. If the company's retained earnings for the end of the year was $38,200, what was the company's retained earnings balance at the beginning of 2014?

Mill Valley Corporation was organized on January 1, 2014, with the investment of $225,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $201,000 in cash and signing a three-year promissory note for the balance. Mill Valley signed a five-year, $50,000 promissory note at a local bank during 2014 and received cash in the same amount. During its first year, Mill Valley collected $93,000 from its customers. It paid $60,600 for inventory, $22,400 in salaries and wages, and another $5,100 in taxes. Mill Valley paid $5,300 in cash dividends. Required 1. Prepare a statement of cash flows for the year ended December 31, 2014. 2. What does this statement tell you that an income statement does not?

Harbor City Corporation's end­of­year balance sheet consisted of the following amounts: What is Harbor City's retained earnings balance at the end of the current year?

Which one of the following items does not accurately describe stockholders' equity?

Hindsville Company reported revenues of $165,000 and net income of $20,000 for 2014. Cash generated by operations was $40,000. In addition, Hindsville Company borrowed $24,000 from a bank. During 2014, Hindsville purchased new equipment for $30,000 cash and paid cash dividends of $15,000 to stockholders. Hindsville's cash balance at the beginning of 2014 was $22,000. A Identify the amount of cash flows for financing, investing, and operating activities for 2014 by filling in the amounts below. Financing Cash Flows: Investing Cash Flows: Operating Cash Flows: B Did Hindsville Company's operating activities generate enough cash to cover its investing and financing activities? Explain. C How much did Hindsville Company's cash balance increase or decrease during 2014?

Which of the following statements is true regarding the multiple-step income statement?

The statement of cash flows, like the income statement, reports only operating activities of a company.

The operating cycle for all businesses is one year.

Several items from the financial statements of Standard Tires are listed below. Use the following answer choices to identify the type of account for each item listed. Place your answers in the space provided. -Interest income