Exam 1: Introduction to Accounting and Business

For each of the following, determine the amount of net income or net loss for the year.

If total liabilities decreased by $46,000 during a period of time and owner's equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is

If the liabilities owed by a business total $300,000 and owners equity is equal to $300,000, then the assets also total $300,000.

Simpson Designers began operations on April 1, 2011. The financial statements for Simpson Designers are shown below for the month ended April 30, 2011 (the first month of operations). Determine the missing amounts for letters (a) through (o). Place your answers in the space provided below. Hint: Use the interrelationships among the financial statements to solve this problem.

A summary of cash flows for Alex Design Services for the year ended December 31, 2012, is shown below. Prepare a statement of cash flows for Alex Design Services for the year ended December 31, 2012.

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

Denzel Jones owns and operates Crystal Cleaning Company. Recently, Denzel withdrew $10,000 from Crystal Cleaning, and he contributed $6,000, in his name, to Habitat for Humanity. The contribution of the $6,000 should be recorded on the accounting records of which of the following entities?

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Determine the missing amount "X" for each of the following:

If total assets decreased by $30,000 during a specific period and owner's equity decreased by $35,000 during the same period, the period's change in total liabilities was an $65,000 increase.

Which of the following is true in regards to a Limited Liability Company?

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

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

Transactions affecting owner's equity include

Revenues are reported when

Goods purchased on account for future use in the business, such as supplies, are called

No significant differences exist between the accounting standards issued by the FASB and the IASB.

Select the type of business that is most likely to obtain large amounts of resources by issuing stock.

Donner Company is selling a piece of land adjacent to their business premises. An appraisal reported the market value of the land to be $220,000. The Focus Company initially offered to buy the land for $177,000. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $232,000. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company?

The assets and liabilities of Amos Moving Services at March 31, 2014, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, 2013, the beginning of the current year. Mr. Amos invested an additional $25,000 in the business during the year. Prepare an income statement for the current year ended March 31, 2014.