Exam 1: Accounting As a Form of Communication

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes. Some terms may be used more than once, while others are not used at all. -The sale of goods or the performance of services.

South Corporation has been in the business of delivering small packages for local companies within the city of Atlanta, Georgia, since 1960. The following information concerning financial activities during 2015 is available at December 31, 2015: A. Prepare an income statement for the year ended December 31, 2015. B. If you were a bank loan officer and South Corporation wanted to borrow $100,000 from your bank, would you lend the money? Explain. C. Calculate retained earnings at December 31, 2015.

Read the information about Burke Company Required: Prepare a single-step income statement for the year ended December 31, 2014.

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. -Inventories

"Claims to economic resources" are known as:

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

Carnival Bakery borrowed $500,000 from Front Street Bank. Carnival then hired a contractor to build a new cookie distribution outlet. In which section of Carnival's statement of cash flows would you find information that indicated that Carnival acquired the new cookie distribution outlet?

On the statement of cash flows, the section involves the purchase and sale of products and services.

Which one of the following groups is considered an internal user of financial statements?

Three organizations important to accounting are listed below. Select the organization that most closely achieves the role described. -Prepares and grades the Uniform CPA Examination.

Complete the December 31, 2015 first year of operation Balance sheet for Weglein Company using the following information: a Retained earnings at December 31, 2015 was $51,000. b Total stockholders' equity at January 1, 2015 was $139,000. c On December 30, 2015, additional capital stock was sold for cash, $55,000 d The land and building were purchased on December 30, 2015 for $150,000.

All assets are tangible in nature.

The Internal Revenue Service IRS recognizes the separate existence of a proprietorship from its owner.

The beginning balance of retained earnings was $630,000, and the ending balance was $650,000. The company declared and paid dividends of $60,000. A Determine the amount of net income for the year. B What information would one find on the income statement in addition to net income?

Sun City Corporation's end­of­year balance sheet consisted of the following amounts: What amount should Sun City report on its balance sheet for total assets?

An expense is an inflow of assets resulting from the sale of goods and services.

One significant difference between a classified and a non-classified balance sheet is the distinction between which of the following items?

Moss Company Moss Company has provided the following information from its accounting records for the current year: -Read the information for Moss Company. What are Moss' current liabilities?

The following information comes from the records of Morton Corporation. Assume no additional investment by owners when answering the following questions: A What is the amount of owners' equity at January 1, 2014? __________________ B What is the amount of liabilities at December 31, 2014? __________________ C Assume that the company declared and paid dividends of $22,000 during the year. How much net income did it earn during the year? D Assume that the company paid no dividends during the year. Without looking at the income statement, how can you tell if the company is profitable or not?

Provided below is a list of important users of accounting information. Below the list are descriptions of a major need of each of the various users. Fill in the blank with the one user group that is most likely to have the need described to the right of the blank. Some user groups may be used more than once or not at all. -The profitability of the company based upon the Internal Revenue Code.