Exam 1: Accounting As a Form of Communication

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

Taryn Corporation The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31,2017: ​ ​ 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 Sal aries 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 and determine the following amounts. A) Total revenues for 2017 ._________ B) Total expenses for 2017 .___________ C) What is the purpose of the income statement? D) Is Taryn Corporation profitable? Expl ain your answer. E) Is this the first year of operations for Taryn Corporation? Explain your answer.

Taryn Corporation The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31,2017: ​ ​ 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 Sal aries 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 and prepare a balance sheet in good form.

A ____________ is the type of accounting used by nonbusiness entities.

Which one of the following is an economic obligation for a business entity?

Ramos Corp.started business at the beginning of the year,with assets of $650,000 and stockholders' equity of $290,000.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.stockholders' equity at the end of the year? B)What was the amount of Ramos Corp.net income or net loss for the year?

Marcos Inc.had net income for 2017 of $40,000.It declared and paid a $3,500 cash dividend in 2017.If the company's retained earnings for the end of the year was $38,200,what was the company's retained earnings balance at the beginning of 2017?

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

If a company prepares a statement of retained earnings,net income plus dividends are added to beginning retained earnings on this statement.

Which of the following statements best describes the term "revenues"?

The following information is provided by Ferrara Corporation: Beginning retained earnings \ 50,000 Ending retained earnings 70,000 Dividends declared and paid 10,000 Revenue 50,000 -What is the net income for Ferrara Corporation?

Which of the following is a five-member body that has the authority from Congress to set standards for conducting audits?

To which of the following entities must a company report if it sells its stock on the organized stock market?

Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $900,000 and its owners' equity remained the same during the year,what was the amount of its total liabilities at the end of the year?

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

Cross Country Busline is an example of a

_____________ is the type of accounting used by external parties.

Capital stock indicates the owners' contributions to a corporation.

On January 1,2017,A-Best Company's balance in retained earnings was $80,000.At the end of the year,December 31,2017,the balance in retained earnings was $94,000.During 2017,the company earned net income of $40,000.How much were dividends?

Harbor City Corporation's end-of-year balance sheet consisted of the following amounts: Cash \ 15,000 Accounts receivable \ 50,000 Property, plant, and 70,000 Long-term debt 40,000 equipment Capital stock 100,000 Accounts payable 20,000 Retained earnings ? Inventory 35,000 - What is Harbor City's retained earnings balance at the end of the current year?