Exam 1: Introduction to Accounting and 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.

Receiving payments on an account receivable increases both equity and assets.

The principal financial statements for a corporation are the income statement,the retained earnings statement,the balance sheet,and the budget.

Determine the missing amount "X" for each of the following: Assets Liabilities Stockholders' Equity a. \ 78,500 \ 37,600 X b. \ 53,280 \ 145,000 c. \ 49,500 X \ 34,000

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

The assets section of the balance sheet normally presents assets in

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

Krammer Company has liabilities equal to one fourth of the total assets.Krammer's stockholders' equity is $45,000.Using the accounting equation,what is the amount of liabilities for Krammer?

Generally accepted accounting principles regulate how and what financial information is reported by businesses.

Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles?

Allen Marks is the sole stockholder of Great Marks Company.As at December 31,2013,Great Marks Company has assets of $940,000 and liabilities of $300,000.During 2014,Allen Marks purchased an additional $73,000 of capital stock and received $33,000 in cash dividends from the business.What is the amount of net income of Great Marks Company during 2014,assuming that as of December 31,2014,assets were $995,000,and liabilities were $270,000?

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31,2011: FeesEarned \ 165,000 Cash \ 30,000 Accounts Receivable 14,000 Selling Expenses 44,000 Equipment 64,000 Capital Stock 7,000 Accounts Payable 22,000 Retained Earnings 23,000 Salaries \& Wages Expense 40,000 Prepaid Rent 2,000 Dividends 5,000 Income Taxes Expense 13,000 Salaries \& Wages Payable 15,000 Rent Expense 20,000 Determine the total liabilities at the end of 2011 for Franklin Company.

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. Assets Liabilities: Stockholders'Equity a. Shiny Kar paid \ 5,000 in cash dividends to stockholders. b. Shiny Kar Company sold 2 cars for a total of \ 55,000 on account. c. The cost of the cars sold in (b) above was \ 40,000 . d. Shiny Kar received \ 35,000 payment for a car previously sold on account. e. Sliny Kar paid \ 450 for advertising. f. ShinyKar purchased \ 150 of cleaning suppliess on account.

Simpson Auto Body Repair purchased $20,000 of machinery.The company paid $8,000 in cash at the time of the purchase and signed a promissory note for the remainder to be paid in four monthly installments.

Which of the following is a manufacturing business?

For accounting purposes,the business entity should be considered separate from its owners in which of the following forms of business?

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

The assets and liabilities of the company are $128,000 and $84,000,respectively.Stockholders' equity should equal

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

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. Prepare a retained earnings statement for the current year ended December 31,2014.