Exam 1: Introduction to Accounting and Business

Which of the following is not true of accounting principles?

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011: Determine the total liabilities at the end of 2011 for Franklin Company.

Use the accounting equation to answer each of the independent questions below. a. At the beginning of the year, Norton Company assets were $75,000 and its stockholders' equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the stockholders' equity at the end of the year? b. At the beginning of the year, Turpin Industries had liabilities of $44,000 and stockholders' equity of $66,000. If assets increased by $10,000 and liabilities decreased by $5,000, what was the stockholders' equity at the end of the year?

Accounting information users need reports about the economic activities and condition of businesses.

Which of the following isnot a characteristic of a corporation?

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing

Indicate how the following transactions affect the accounting equation: (a) The purchase of supplies on account. (b) The purchase of supplies for cash. (c) Cash dividends paid to stockholders. (d) Revenues received in cash. (e) Revenues received on account.