Exam 2: Basic Accounting Concepts

The income statement for August indicates net income of $50,000.The corporation also paid $10,000 in dividends during the same period.If there was no beginning balance in stockholders' equity,what is the ending balance in stockholders' equity?

If a $15,000 purchase of equipment for cash is incorrectly recorded as an increase to equipment and as an increase to cash,at the end of the period assets will

An increase in Stockholders' Equity from revenues earned will also result in an increase in

A to Z Corporation engaged in the following transaction "Paid a $10,000 cash dividend." On the Statement of Cash Flows,the transaction would be classified as

Exhibit 2-1 -Refer to Exhibit 2-1.What is net income,assuming no stock was issued and dividends of $25,000 were paid?

For EFG Co. ,the transaction "Payment of dividends" would

For EFG Co. ,the transaction "Receipt of a utility bill" would

For EFG Co. ,the transaction "Payment of interest expense" would

Flow,Inc.received cash from fees earned.How does this transaction affect the Statement of Cash Flows?

For EFG Co. ,the transaction "Payment to creditors" would

When an accounts payable account is paid in cash,the stockholders' equity in the business increases.

Which of the following will increase stockholders' equity?

Which of the following situations increase stockholders' equity?

Johnson,Inc.purchased land for cash.What effect does this transaction have on the following accounts:

The payment of a liability

For EFG Co. ,the transaction "Purchase of store equipment with a note payable" would

When an account receivable is collected in cash,the total assets of the business increase.

Gibbs Company has $16,000 in Retained Earnings,$27,000 in Assets,and $5,000 in Liabilities.How much is in Common Stock?

The basic elements of a financial accounting system include a framework for preparing financial statements.

A __________ is an economic event that under generally accepted accounting principles affects an element of the financial statements and must be recorded.