Exam 1: An Introduction to Accounting

What is meant by the term "global GAAP"? How does it impact U.S.companies? What body is responsible for setting global standards?

Use the following information to answer questions Yowell Company began operations on January 1,2016.During 2016,the company engaged in the following cash transactions: 1)issued stock for $40,000 2)borrowed $25,000 from its bank 3)provided consulting services for $39,000 4)paid back $15,000 of the bank loan 5)paid rent expense for $9,000 6)purchased equipment costing $12,000 7)paid $3,000 dividends to stockholders 8)paid employees' salaries,$21,000 -What is Yowell's net cash flow from operating activities?

Which of the following is false regarding managerial accounting information?

An asset use transaction does not affect the total amount of claims to a company's assets.

Which of the following items is an example of revenue?

Use the following information to answer questions Packard Company engaged in the following transactions during 2015,its first year in operations: (Assume all transactions are cash transactions. ) 1)Acquired $950 cash from the issue of common stock. 2)Borrowed $420 from a bank. 3)Earned $650 of revenues. 4)Paid expenses of $250. 5)Paid a $50 dividend. During 2016,Packard engaged in the following transactions: (Assume all transactions are cash transactions. ) 1)Issued an additional $325 of common stock. 2)Repaid $220 of its debt to the bank. 3)Earned revenues of $750. 4)Incurred expenses of $360. 5)Paid dividends of $100. -Packard Company's net cash flow from financing activities for 2016 is

Chow Company earned $1,500 of cash revenue,paid $1,200 for cash expenses,and paid a $200 cash dividend to its owners.Which of the following statements is true?

What financial statement elements are reported on a balance sheet?

Reynolds Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on Reynolds' statements?

Which of the following does not describe the effects of an asset use transaction on a company's financial statements?

Which of the following is not an asset use transaction?

Indicate whether each of the following statements about accounting information is true or false. _______ a)Financial accounting is primarily intended to satisfy the information needs of internal stakeholders. _______ b)Managerial accounting information includes financial and nonfinancial information. _______ c)The accounting information intended to satisfy the needs of a company's employees is managerial accounting information. _______ d)GAAP requires that companies adhere to financial accounting standards. _______ e)Managerial accounting information is usually less detailed than financial accounting information.

Robertson Company paid $1,850 cash for rent expense.As a result of this business event,

If a company's total assets increased while liabilities and common stock were unchanged,then

The stockholders of a business have a priority claim to its assets in the event of liquidation.

During 2016,Chico Company earned $1,950 of cash revenue,paid $1,600 of cash expenses,and paid a $150 cash dividend to its owners.Based on this information alone,which of the following is not correct?

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts. -Walker Co.issued common stock for $150,000 cash.

Use the following information to answer questions Lexington Company engaged in the following transactions during 2015,its first year in operation: (Assume all transactions are cash transactions) 1.Acquired $6,000 cash from issuing common stock. 2.Borrowed $4,400 from a bank. 3.Earned $6,200 of revenues. 4.Incurred $4,800 in expenses. 5.Paid dividends of $800. Lexington Company engaged in the following transactions during 2016: 1.Acquired an additional $1,000 cash from the issue of common stock. 2.Repaid $2,600 of its debt to the bank. 3.Earned revenues,$9,000. 4.Incurred expenses of $5,500. 5.Paid dividends of $1,280. -The amount of retained earnings on Lexington's 2015 balance sheet was

Who are the three distinct types of participants in a market? Briefly describe the role of each group of participants.

Liabilities are shown on the