Exam 1: Accounting As a Form of Communication

An expense is an inflow of assets resulting from the sale of goods and services.

______________________ consists of all activities necessary to provide the members of an economic system with goods and services.

The second step in the ethical decision-making model is to

The income statement is sometimes called the statement of financial position.

All of the following are examples of manufacturers except

Which concept is the reason the dollar is used in the preparation of financial statements?

All of the following are different expressions for net income except

Which of the following best describes the term "expenses"?

Which one of the following groups is considered an internal user of financial statements?

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 eamings \_\_\_\_ \_\_\_\_ 2. Buildings \_\_\_\_ \_\_\_\_ 3. Common stock \_\_\_\_ \_\_\_\_ 4. Accounts payable \_\_\_\_ \_\_\_\_ 5. Football ticket sales \_\_\_\_ \_\_\_\_ 6. Salaries expense \_\_\_\_ \_\_\_\_ 7. Accounts receivable \_\_\_\_ \_\_\_\_

The following accounting principles and assumptions are included in the conceptual framework of accounting: ​ $\text { Economic entity } \quad \text { Going concern } \quad \text { Cost principle }$ $\text { Monetary unit } \quad \text { Time period }$ For each situation in A through C below,identify which assumption or principle applies by selecting from the list provided above,and explain why that assumption or principle applies. A) Global Corp. has divisions in several countries around the world. Each of these countries has a currency different from the U.S. dollar. Global Corp. is a U.S. company and must include the financial data of its worl dwide divisions in its financial statements. B) Steve and Mike operate a security business as a partnership. They are considering the advantages of changing over to the corporate form of business. C) Island Pasta is a locally owned and operated fast-food business. The owners have decided to expand into nearby cities. Expansion will require more capital, but management doesn't expect it will stay in business for more than a year or so regardless of whether it expands or not.

All of the following are important provisions of the Sarbanes-Oxley Act except

Which one of the following items is correct concerning the time element of financial statements?

Joseph is the president of Sunshine Enterprises.Sunshine Enterprises began business on January 1,2017.The company's controller is out of the country on business.Joseph needs a copy of the company's balance sheet for a meeting tomorrow and asks his assistant to obtain the required information from the company's records.She presents Joseph with the following balance sheet.He asks you to review it for accuracy.Sun shine Enterprises Balance Sheet For the Year Ended December 31, 2017 ASSETS LIABL IT IES \& STOCKHOLDERS' EQUITY Accounts payable \ 30,600 Accounts receivable \ 24,200 Buil ding and equipment 177,300 Supplies 12,200 Cash 14,700 Capital stock 100,000 Cash dividends declared and paid 16,000 Net income for 2017 113,800 Required: 1.Prepare a corrected balance sheet. 2.Draft a memo explaining the major differences between the balance sheet Joseph's assistant prepared and the one you prepared.

At December 31,2017,the accounting records of Tasty Foods Corporation contain the following: Accounts payable \ 16,000 Accounts receivable \ 40,000 Land 240,000 Cash ? Capital stock ? Equipment 120,000 Building 180,000 Notes payable 190,000 Retained earnings 160,000 - If capital stock is $260,000,what is the December 31,2017 cash balance?

List three different groups of users of accounting information.Indicate the type of decisions each group typically makes from accounting information.

Presented below are selected data from the balance sheet of Farmer Company for 2017.The figures are expressed in millions. ​ Total current assets \ 5,572 Property, plant, and equipment 16,325 Other assets ? Total current liabilities 3,274 Total long-term debt 5,632 Total stockholders' equity 19,639 A) Determine the amount of "Other assets" for Farmer's 2017 bal ance sheet. (HINT: You must use the accounting equation concept to determine your answer.) B) How much of Farmer Company is financed by creditors? How much is financed by the owners?

In 2002,Congress passed the ________________ Act to bring reform to corporate accountability and stewardship in the wake of a number of major corporate scandals.

Sawyer Corporation purchased land in 2009 for $490,000.In 2015,it purchased a nearly identical parcel of land for $660,000.In its 2015 balance sheet,Sawyer valued these two parcels of land at a combined value of $1,320,000.By reporting the land in this manner,Sawyer Corporation has violated which of the following?

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