Exam 1: Accounting As a Form of Communication

A partnership is a business owned by two or more individuals.

Three organizations important to accounting are listed below.Select the organization that most closely achieves the role described. -Issues financial accounting concepts that are used as a guide to accounting standard setting.

Which of the following would be internal users of accounting information?

Which of the following invests funds into a business and is considered an owner?

Canyon Corporation The accountant for the Canyon Corporation prepared the following list from the company's accounting records for the year ended December 31, 2016: Retained earnings ? Prepaid expenses \ 3,000 Cash \ 7,000 Common stock 40,000 Accounts payable 15,000 Accounts receivable 17,000 Sales revenue 125,000 Interest income 500 Cost of sales 70,000 Salary expense 4,000 Land 75,000 Income tax expense 200 Notes payable 15,000 Selling expense 45,000 Inventory 20,000 Salaries payable 5,000 ​ ​ -Read the information for Canyon Corporation.Using good form, prepare an income statement for Canyon Corporation.

Anthony Corp.started business at the beginning of the year, with assets of $650,000 and stockholders' equity of $240,000.By the end of the year, assets increased by $80,000 and liabilities increased by $60,000.Other than net income or loss, the only change in stockholders' equity was dividends declared and paid of $55,000. A) What was the amount of Ramos Corp. stockhol ders' equity at the end of the year? B) What was the amount of Ramos Corp. net income or net loss for the year?

Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?

Leary Corporation's end-of-year balance sheet consisted of the following amounts: ? Cash \ 25,000 Accounts receivable \ 46,000 Property, plant \& 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 total liabilities balance at the end of the current year?

Lewis Corporation reported the following information for the year ended December 31, 2016: Net income \ 10,000 Dividends 6,000 Retained earnings at December 31,2016 25,000 ? What was the economic effect of the payment of Lewis' dividends?

Meredith Corporation is in the business of providing dog and cat grooming services to customers within the city of New York.The following information concerning financial activities during 2016 is available at December 31, 2016: ​ Grooming revenue \ 130,000 Salary and wage expense \ 44,000 Dividends declared and paid 13,000 Rent expense 24,000 Equipment 40,000 Furniture 60,000 Accounts payable 30,000 Accounts receivable 23,000 Capital stock 22,000 Retained earnings, Jan. 1,2016 21,000 Utilities expense 10,000 Notes payable 88,000 Cash 33,000 Income tax expense 7,000 ​ A. Calculate net income for 2016. B. Prepare a statement of retained earnings for the year ended December 31, 2016. C. What information can you derive from the statement of retained earnings concerning this company? Explain.

Canyon Corporation The accountant for the Canyon Corporation prepared the following list from the company's accounting records for the year ended December 31, 2016: Retained earnings ? Prepaid expenses \ 3,000 Cash \ 7,000 Common stock 40,000 Accounts payable 15,000 Accounts receivable 17,000 Sales revenue 125,000 Interest income 500 Cost of sales 70,000 Salary expense 4,000 Land 75,000 Income tax expense 200 Notes payable 15,000 Selling expense 45,000 Inventory 20,000 Salaries payable 5,000 ​ ​ -Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation. A) Total assets at the end of 2016 .             ------------------------- B) Total liabilities at the end of 2016.             ------------------------- C) Total equity at the end of 2016.             -------------------------

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.

On January 1, 2016, Francisco Company's balance in retained earnings was $80,000.During 2016, the company earned net income of $43,000 and paid $15,000 in dividends.Calculate the retained earnings balance at December 31, 2016.

Which one of the following correctly represents one of the basic financial statement models?

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

If a company prepares a statement of stockholders' equity, net income is deducted to retained earnings on this statement.

The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31, 2016: ​ Sales revenue \ 165,000 Cash \ 30,000 Accounts receivable 14,000 Selling expenses 44,000 Equipment 42,000 Common stock 41,000 Accounts payable 12,000 Interest income 3,000 Salaries and wages expense 40,000 Cost of sales 51,000 Inventories 22,000 Prepaid expenses 2,000 Income taxes payable 5,000 Income taxes expense 18,000 Notes payable 20,000 Retained earnings ? ​ ​ -Read the information for Taryn Corporation.Determine the following amounts for Taryn Corp. A) Total assets at the end of 2016              ------------------------- B) Total liabilities at the end of 2016         ------------------------- C) What parties have a claim on Taryn Corporation's assets? Explain you answer in the terms of the accounting equation.

Which of the following statements is true?

The concept that assumes that an entity is not in the process of liquidation is _________________________.

The amount of earnings distributed to stockholders can be found in the income statement.