Exam 1: Introduction to Accounting and Business

The assets section of the balance sheet normally presents assets in

What is the major difference between the objective of financial accounting and the objective of managerial accounting?

Which of the following is not an asset?

If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is

What are the three sections of the statement of cash flows?

Discuss the characteristics of a LLC (Limited liability company).

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

The monetary value charged to customers for the performance of services or sales is called a(n)

Denzel Jones is the major stockholder of Crystal Cleaning Company. Recently, Denzel received $10,000 of dividends from Crystal Cleaning. After receiving the dividends, he contributed $6,000, in his name, to Habitat for Humanity. The contribution of $6,000 should be recorded on the accounting records of which of the following entities?

How does paying a liability in cash affect the accounting equation?

An example of an external user of accounting information is the federal government.

Given below are the accounts and amounts for Bright Futures Company as of August 31, 2011. All of the revenue and expense amounts are for the month of August. Telephone Expense \ 1,150 Cash 3,000 AccountsPayable 1,540 Dividends 800 FeesEarned 15,700 Rent Expense 1,400 Supplies 140 Accounts Receivable 1,500 Computer Equipment 20,000 Capital Stock 10,000 WagesExpense 4,800 Utilities Expense 750 Notes Payable 2,400 Retained Earnings 4,320 Office Expense 420 Based on the data provided for Bright Futures Company, prepare in good format a retained earnings statement for the month ended August 31, 2011.

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The retained earnings balance was $68,000 at January 1, 2014. Net income for 2014 is $45,625. Prepare an income statement for the current year ended December 31, 2014.

For each of the following, determine the amount of net income or net loss for the year.

The balance sheet represents the accounting equation.

Shiny Kar Company had the following transactions. For each transaction, show the effect on the accounting equation by putting the amount and direction (plus, minus, or NC for no change) in each box of the table below.

Equipment with an estimated market value of $30,000 is offered for sale at $45,000. The equipment is acquired for $15,000 in cash and a note payable of $20,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is

What information does the income statement give to business users?

Explain the meaning of: (a) the objectivity concept (b) the unit of measure concept

On July 1 of the current year, the assets and liabilities of Wong Company 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 stockholders' equity as of July 1 of the current year?