Exam 1: Introduction to Accounting and Business

On May 7,Carpet Barn Company offered to pay $83,000 for land that had a selling price of $105,000.On May 15,Carpet Barn accepted a counteroffer of $95,000.On June 5,the land was assessed at a value of $115,000 for property tax purposes.On December 10,Carpet Barn Company was offered $135,000 for the land by another company.At what value should the land be recorded in Carpet Barn Company's records?

The Sarbanes-Oxley Act prohibits CPAs from providing nonaudit investment banking services.

Some of the major fraudulent acts by senior executives started as what they considered to be small ethical lapses which grew out of control.

The total assets and total liabilities of Paul's Pools,a corporation,at the beginning and at the end of the current fiscal year are as follows:

Amos Moving Services' account balances at March 31,2014,the end of the current year,are listed below.The Retained Earnings balance was $180,000 at April 1,2013,the beginning of the current year. AccountsPayable \ 2,000 Miscellaneous Expense \ 1,030 Accounts Receivable 10,340 Office Expense 1,240 Cash 21,420 Sipplies 1,670 FeesEarned 73,450 Wages Expense 23,550 Land 47,000 Dividends 16,570 Building 157,630 Capital Stock 25,000 Based on the data provided for Amos Moving Services,prepare a balance sheet for the current year ended March 31,2014.

Explain the interrelationship between the balance sheet and the statement of cash flows.

An account receivable is a claim against a customer arising from a sale on account.

An example of a general-purpose financial statement would be a report about projected price increases related to transportation costs.

Which of the following is a body established by the Sarbanes-Oxley Act of 2002 for the accounting professionals?

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: (a)total revenue, (b)total expenses, (c)net income.

The unit of measure concept

All financial statements are identified by the name of the business,the title of the statement,and the date or period of time.

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. 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 statement of cash flows consists of three sections: cash flows from operating activities,cash flows from income activities,and cash flows from equity activities.

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?

Proper ethical conduct implies that you only consider what's in your best interest.

About 90% of the businesses in the United States are organized as corporations.

Schultz Tax Services,a tax preparation business had the following transactions during the month of June: 1.Received cash for providing accounting services,$3,000. 2.Billed customers on account for providing services,$7,000. 3.Paid advertising expense,$800. 4.Received cash from customers on account,$3,800. 5.paid cash dividends,$1,500. 6.Received telephone bill,$220. 7.Paid telephone bill,$220 Based on the information given above,calculate the balance of Cash at June 30.

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