Exam 1: Introduction to Accounting and Business

Companies like Enron,WorldCom,and Tyco International,Ltd.have been caught in the midst of ethical lapses that led to fines,firings,and criminal and/or civil prosecution.List and briefly describe three factors that are responsible for what went wrong in these companies.

Ramos Repair Company paid $750 in dividends to its stockholders.How does this transaction affect Ramos Repair Company's accounting equation?

Darnell Company purchased $88,000 of computer equipment from Joseph Company.Darnell Company paid for the equipment using cash that had been obtained from the sale of capital stock to Donnie Darnell. Which entity or entities (Darnell Company,Joseph Company,Donnie Darnell)should record the transaction involving the computer equipment on their accounting records?

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?

The role of accounting is to provide many different users with financial information to make economic decisions.