Exam 1: Accounting As a Form of Communication

Develop an ethical dilemma scenario that an accountant may face and give examples of key elements listed below that should be considered when analyzing the decision: 1. Those who may benefit or be harmed 2. What potential benefits or harm could result from the situation 3. The rights or claims violated 4. The specific interests in conflict 5. The responsibilities and obligations

Cerrato Company has assets of $350,000, liabilities of $130,000, and retained earnings of $180,000. How much is total owners' equity?

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. -Selling expenses

An advantage of the current ratio is that it considers the makeup of the current assets.

Which of the following best describes the term "retained earnings"?

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 cost of doing business that results from the process of generating revenues.

The balance sheet of Evanston Inc. includes the following items: Required: 1 Determine the current ratio and working capital. 2 What does the composition of the current assets tell you about Evanston's liquidity? 3 What other information do you need to fully assess Evanston's liquidity?

Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year: -Read the information about Marvel Shoes. What was the amount of net increase or decrease in the cash balance for Marvel Shoes for the current year?

Which of the following represents the proper order of the financial decision framework?

are cash and other assets that are reasonably expected to be realized in cash during the normal operating cycle of the business.

The purpose of financial reporting is to provide economic information to external decision makers only.

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. -A category on the balance sheet to indicate the owners' direct investment in a corporation.

Presented below are items from Joplin Shoes statement of cash flows for 2014. A Determine whether Joplin Shoes' cash increased or decreased during the year. B How much cash does Joplin Shoes have at the end of 2014? C What is the purpose of the statement of cash flows?

All of the following are the types of activities that businesses engage in except:

The going concern assumption infers that a company will continue to operate indefinitely.

Hopper, Inc. Use the information from Hopper Inc. to answer the following questions. -Read the information about Hopper, Inc. Which ratio are you able to calculate given only the information provided by Hopper?

At December 31, 2015, the accounting records of Farmer Corporation contain the following: If Cash is $26,000, what is the December 31, 2015 capital stock balance?

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014: Required: Suppose Harrison Company had a decrease in its cash account from 2014 to 2015. Would the other current asset amounts have increased or decreased? Explain.

The three forms of business entities are:

Skyline, Inc. The balance sheet of Skyline Inc. includes the following items: -Read the information about Skyline, Inc. What is Skyline's current ratio?