Exam 1: Introduction to Accounting and Business

Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once. -A formal presentation of the accounting equation

On July 1 of the current year,the assets and liabilities of John Wong,DVM,are as follows: Cash,$27,000; Accounts Receivable,$12,300; Supplies,$3,100; Land,$35,000; Accounts Payable,$13,900.What is the amount of owner's equity (John Wong's capital)as of July 1 of the current year?

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Match the following business types with each business listed below. Each may be used more than once. -A men's clothing store

Which of the following is not a role of accounting in business?

The owner's rights to the assets rank ahead of the creditors' rights to the assets.

Selected transactions completed by a proprietorship are described below.Indicate the effects of each transaction on assets,liabilities,and owner's equity by inserting "+" for increase and "−" for decrease in the appropriate columns at the right.If appropriate,you may insert more than one symbol in a column.

Match the following business types with each business listed below. Each may be used more than once. -A modular homebuilder

If an owner wanted to know how money flowed into and out of the company,which financial statement would the owner use?

Assets are

Which of the following accounts is a liability?

Match the following business types with each business listed below. Each may be used more than once. -An automobile dealer

If the liabilities owed by a business total $300,000 and owner's equity is equal to $300,000,then the assets also total $300,000.

The debt created by a business when it makes a purchase on account is referred to as an

Four financial statements are usually prepared for a business.The statement of cash flows is usually prepared last.The statement of owner's equity (OE),the balance sheet (B),and the income statement (I)are prepared in a certain order to obtain information needed for the next statement.In what order are these three statements prepared?

Which of the following is not a business transaction?

Ramon Ramos has withdrawn $750 from Ramos Repair Company's cash account to deposit in his personal account.How does this transaction affect Ramos Repair Company's accounting equation?

Financial accounting provides information to all users,while the main focus for managerial accounting is to provide information to the management.

Cash investments made by the owner to the business are reported on the statement of cash flows in the

Which of the following concepts relates to separating the reporting of business and personal economic transactions?