Exam 1: Introduction to Accounting and Business

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

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

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

From the following list of accounts taken from Lamar's accounting records, identify those that would appear on the Income Statement.

The unit of measurement concept requires that economic data be recorded in a common unit of measurement.

How does the purchase of equipment by signing a note affect the accounting equation?

Ramierez Company received their first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

Bob Johnson is the sole owner of Johnson's Carpet Cleaning Service. Bob purchased a personal automobile for $10,000 cash plus he took out a loan for $20,000 in his name. Describe how this transaction is related to the business entity concept.

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 initial investment by Donnie Darnell. Which entity or entities (Darnell Company, Joseph Company, Donnie Darnell) should record the transaction involving the computer equipment on their accounting records?

Which of the following is not a business transaction?