Exam 15: Basic Accounting: Concepts, techniques, and Conventions

A stockholders contributed $100,000 in exchange for stock in the company.What is the effect of this transaction?

The cash basis of accounting recognizes the impact of transactions in the period when ________.

Cash collections from customers who purchased goods on credit will decrease ________.

An entity's economic obligations to nonowners are called ________.

Moody Company has the following information available for the most current year: Paid-in capital, January 1, 2014 \ 475,000 Retained earnings, January 1, 2014 \1 00,000 Total revenues in 2014 \ 870,000 Total expenses in 2014 \5 50,000 Dividend declared in 2014 \7 0,000 Dividend paid in 2014 \ 0 Investments by owners in 2014 \1 0,000 What was the total amount of stockholders' equity for Moody Company at December 31,2014?

The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.

I want to know where a company stands financially at December 31,2014.Which financial statement should I use?

Marianne Company reports the following information on December 31,2011: Cash \ 70,000 Accounts receivable 102,000 Accounts payable 71,000 Accrued wages payable 6,000 Unearned revenue 2,000 Paid-in capital 59,000 Retained earnings ? Inventory 30,000 Prepaid rent 4,000 Equipment (net) 12,000 What is total stockholders' equity at December 31,2011?

A multiple-step income statement includes a subtotal for gross profit.

On July 1,Singh Company paid 6 months' insurance in advance.The policy covers the period of July 1 through December 31.The total payment was $5,400.At the time of the payment,the company set up the Prepaid Insurance account for $5,400.What is the balance in the Prepaid Insurance account on August 31?

An example of an explicit transaction is ________.

Under the cash basis of accounting,expenses are matched with the revenues they help generate.

On March 1,a landlord received $10,000 rent for the month of April.On March 1,the landlord will ________.

Patrick Company had the following transactions: 1)The owner started the company by investing $10,000 of cash. 2)The company paid $2,000 for six months of rent.The rent was paid in advance. 3)The company acquired $3,300 in inventory and put one-third of the purchase on account.The company paid $2,200 cash. 4)The company sold inventory costing $1,400 for $2,900 on account. After all these transactions,what is the balance in the cash account?

When cash dividends are declared,________ decrease(s)and ________ increase(s).

A multiple step income statement ________.

Radison Company owns a fixed asset with an original cost of $100,000.The company estimates it will use the fixed asset for 5 years,at which time the fixed asset will be sold for $5,000.The company uses straight-line depreciation.The annual depreciation expense is ________.

Under accrual basis accounting,we record expenses when ________.

On January 1,2014,Everest Company paid $4,000 for insurance that covers the period,February 1,2014 through January 31,2015.Which of the following journal entries is prepared on January 1,2014?

The statement of financial position is also called the ________.