Exam 1: Introduction to Accounting and Business

Selected transactions completed by a corporation are described below. Indicate the effects of each transaction on assets, liabilities, and stockholders' equity by inserting "+" for increase and "-" for decrease in the appropriate columns at the right. If appropriate, you may insert more than one symbol in a column.

Identify each of the following as an (1) increase in stockholders' equity, or a (2) decrease in stockholders' equity.

Proprietorships are owned by one owner and provide only services to their customers.

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:

The following selected transactions were completed by Daniels Company during May: Note: Each transaction has two entries.

Which of the following is not a role of accounting in business?

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.

Amos Moving Services' account balances at March 31, 2011, the end of the current year, are listed below. The Retained Earnings balance was $180,000 at April 1, 2010, the beginning of the current year. Based on the data provided for Amos Moving Services, prepare an income statement for the year ended March 31, 2011.

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

Owners' rights to assets rank ahead of creditors' rights to assets.

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?

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

Managerial accountants would be responsible for providing which of the following?

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:

Use the accounting equation to answer each of the independent questions below. a. At the beginning of the year, Norton Company assets were $75,000 and its stockholders' equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the stockholders' equity at the end of the year? b. At the beginning of the year, Turpin Industries had liabilities of $44,000 and stockholders' equity of $66,000. If assets increased by $10,000 and liabilities decreased by $5,000, what was the stockholders' equity at the end of the year?

Identify which of the following accounts appear on a balance sheet.

For each of the following companies, identify whether it is a service, merchandising, or manufacturing business.

Indicate whether each of the following activities would be reported on the statement of cash flows as an operating activity, an investing activity, a financing activity, or not at all.

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 initials GAAP stand for