Exam 1: Introduction to Accounting and Business

At the end of its accounting period, December 31, 2010, Miller's Arcade has assets of $450,000 and liabilities of $125,000. Using the accounting equation, determine the following amounts:

If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is

Which of the following is a manufacturing business?

On March 1, 2014, Cook's Catering Company Capital Stock balance was $30,000 and the balance of Retained Earnings was $120,000. During March, dividends of $31,000 were declared and paid by the business. Assets, liabilities, revenues, and expenses at March 31, 2014, were as follows: Present, in good form, (a) an income statement for March, (b) a retained earnings statement for March, and (c) a balance sheet as of March 31.

Simpson Designers began operations on April 1, 2011. The financial statements for Simpson Designers are shown below for the month ended April 30, 2011 (the first month of operations). Determine the missing amounts for letters (a) through (o).

Declaring and paying cash dividends

Countries outside the United States use financial accounting standards issued by the

Given the following data: Dec. 31,2014 Dec. 31,2013 Total liabilities \ 128,250 \ 120,000 Total stockholders' equity 95,000 80,000 Compute the ratio of liabilities to stockholders' equity for each year. Round to two decimal places.

The cost concept is the basis for entering the exchange price into the accounting records.

How does the purchase of equipment by signing a note affect the accounting equation?

The business entity concept means that

Bob Johnson is the sole stockholder of Johnson's Carpet Cleaning Service. Bob purchased a personal automobile for $10,000 cash plus he took loan for $20,000 in his name. Describe how this transaction is related to the business entity concept.

A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to

Liabilities are reported on the

Given the following: Beginning retained earnings $ 58,000 Ending retained earnings $ 30,000 Dividends declared and paid $ 25,000 Calculate net income or net loss.

If total assets decreased by $30,000 during a specific period and stockholder's equity decreased by $35,000 during the same period, the period's change in total liabilities was an $65,000 increase.

There are four transactions that affect stockholders' equity. (a) What are the two types of transactions that increase stockholders' equity? (b) What are the two types of transactions that decrease stockholders' equity?

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

On April 25, Gregg Repair Service extended an offer of $115,000 for land that had been priced for sale at $140,000. On May 3, Gregg Repair Service accepted the seller's counteroffer of $125,000. On June 20, the land was assessed at a value of $95,000 for property tax purposes. On August 4, Gregg Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in Gregg Repair Service's records?

Explain the meaning of the business entity concept.