Exam 1: Accounting As a Form of Communication

The FASB is an external user that has the authority of the law to obtain certain accounting information.

Information must be timely to be relevant.

Capital stock indicates the owners' ownership to a corporation.

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 exact amount of profit on each product of the company.

Management accounting is the branch of accounting concerned with communication with internal management.

Volt Corp.reported the following information for the year ended December 31, 2016: Revenues \ 50,000 Expenses 20,000 Retained earnings at December 31,2016 100,000 Retained earnings at December 31,2015 105,000 ? How much was paid out in dividends by Volt in 2016?

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. -Sale of tires

Which of the following would be classified as external users of financial statements?

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 primary objective of external auditors is to provide assurance to stockholders and other users that the statements are fairly presented.

Leary Corporation's end-of-year balance sheet consisted of the following amounts: ? Cash \ 25,000 Accounts receivable \ 46,000 Property, plant, and equipment 69,000 Long-term debt 41,000 Capital stock 107,000 Accounts payable 22,000 Retained earnings ? Inventory 33,000 ? What is Leary's retained earnings balance at the end of the current year?

Which one of the following financial statements reports an entity's financial position at a specific date?

Classify the following items according to the financial statement on which each belongs, either the income statement (IS) or the balance sheet (BS).Also indicate whether each is a revenue (R), expense (E), asset (A), liability (L), or owners' equity (OE) item. Appears on Which Statement? Type of Account 1. Retained earnings \_\_\_\_\_\_ \_\_\_\_\_\_ 2. Buildings \_\_\_\_\_\_ \_\_\_\_\_\_ 3. Common stock \_\_\_\_\_\_ \_\_\_\_\_\_ 4. Accounts payable \_\_\_\_\_\_ \_\_\_\_\_\_ 5. Football ticket sales \_\_\_\_\_\_ \_\_\_\_\_\_ 6. Salaries expense \_\_\_\_\_\_ \_\_\_\_\_\_ 7. Accounts receivable \_\_\_\_\_\_ \_\_\_\_\_\_

Match the following business forms with their characteristics below. -Control most private resources in the U.S.

Which one of the following events involves a liability for a business?

An auto repair company is not an example of a manufacturer.

Several amounts from Duggard Company at December 31, 2016 are listed below.Answer the questions. Service revenue \ 245,000 Salaries expense \ 109,000 Dividends declared and paid 15,000 Rent expense 36,000 Buil dings 110,000 Land 100,000 Accounts payable 40,000 Accounts receivable 28,000 Capital stock 60,000 Retained earnings, Jan. 1, 2016 40,000 Utilities expense 19,000 Notes payable 30,000 Income tax payable 4,000 Income tax expense 11,000 ​ A) Calculate net income for 2016 . B) How much is Duggard Company's retained earnings at the end of 2016 ? C) What primary asset account is missing?

The term used to refer to an asset's original cost is "fair market value."

GAAP stands for Generally Accepted Accounting Procedures.

Harbor City Corporation's end-of-year balance sheet consisted of the following amounts: ? Cash \ 15,000 Accounts receivable \ 50,000 Froperty, plant, and equipment 70,000 Long-term debt 40,000 Capital stock 100,000 Accounts payable 20,000 Retained earnings ? Inventory 35,000 ? What amount should Harbor City report on its balance sheet for total assets?