Exam 1: Accounting As a Form of Communication

Murphy Corporation's end-of-year balance sheet consisted of the following amounts: ? Cash \ 35,000 Accounts receivable \ 46,000 Property, plant \& equip ment 69,000 Long-term debt 41,000 Capital stock 107,000 Accounts payable 22,000 Retained earnings ? Inventory 33,000 ? ? What is Murphy's owners' equity balance at the end of the current 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. -Cash

Which of the following statements would be true if you own stock in a company?

Gym Corporation reported the following information at December 31, 2016: Accounts payable \ 40,000 Dividends declared and paid \ 10,000 Cash 75,000 Expenses 60,000 Inventories 18,000 Revenue 75,000 A) Calculate Gym Corporation's total assets. B) Calculate Gym Corporations' net income for 2016. C) Calculate Gym Corporation's total stockholders' equity at the end of 2016 .

Which of the following is the correct date format for the financial statement heading?

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 distribution of the net income of a business to its owners.

Good quality information should be both _____________ and present a __________________.

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 financial status of a company issuing securities to the public for the first time.

Dimension Inc.had net income for 2016 of $24,000.It declared and paid a $13,000 cash dividend in 2016.If the company's retained earnings for the end of the year were $39,600, what was the company's retained earnings balance at the beginning of 2016?

The reliability of the information in a company's financial statements is the responsibility of which of the following?

The following information comes from the records of Morton Corporation.Assume no additional investment by owners when answering the following questions: Assets Liabilities Owners' Equity January 1, 2016 \9 8,000 \5 4,000 \ December 31, 2016 131,000 84,000 A) What is the amount of owners' equity at January 1, 2016? B) What is the amount of liabilities at December $31,2016 ?$ 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?

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. -Accounts payable

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. -An entity that lends a company money with the expectation of repayment.

Match the following business forms with their characteristics below. -A share of stock acts as evidence of ownership

Three organizations important to accounting are listed below.Select the organization that most closely achieves the role described. -Is a professional organization of certified public accountants.

In order for accounting information to be useful in making informed decisions, it must be

Below are several accounts from Costello Company's accounting records.Answer the questions that follow. Total liabilities, end of the year \ 92,000 Total assets, end of the year \ 143,000 Capital stock, end of the year 16,000 Retained earnings, beginning of the year \ 15,000 Dividends declared and paid for the period 20,000 Net income 40,000 ​ A) How much is the balance of retained earnings at the end of the year? B) Show the accounting equation for Costello Company at the end of the year with the respective dollar amounts. C) If stockholders' equity increases during the year, does that mean that the company is profitable? Explain your answer.

A balance sheet provides information during a period of time, while the other basic financial statements provide information on activities that occur over a point in time.

You are a potential stockholder and are concerned that a particular company you are ready to invest in might have too much debt.Which financial statement would provide you information needed in order to evaluate your concern?

Business entities and non-business entities are both organized to earn a profit.