Exam 1: Introducing Accounting in Business

If the liabilities of a business increased $75,000 during a period of time and the equity in the business decreased $30,000 during the same period, the assets of the business must have:

Viscount Company collected $42,000 cash on its accounts receivable. How does this transaction affect the company's accounting equation?

U.S. government bonds are:

A company spent $52,000 in cash for this period's advertising activities. Enter the appropriate amounts that reflect this transaction into the accounting equation format shown below. Assets = Liabilities + Equity

Prior to purchasing a tract of land, Fast-Forward had the land appraised at $300,000. The management of Fast-Forward purchased the land for $275,000. At what amount should the land be recorded on Fast-Forward's books? What accounting principle supports your answer?

Social responsibility:

The Retained earnings is increased when cash is received from customers in payment of previously recorded accounts receivable.

Which of the following accounting principles would prescribe that all goods and services purchased is recorded at cost?

From the information given, prepare a November statement of retained earnings. On November 1 of the current year, Lois Bell began Lois Bell, Interior Design as a corporation with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) selected accounts and amounts:

If assets are $99,000 and liabilities are $32,000, then equity equals:

A company had total equity of $89,000 on January 1, 2011. The following information is available for the year ended December 31, 2011: What are the total assets of the company at December 31, 2011? 2011 Revenues \ 350,000 2011 Expenses 403,000 Liabilities, at December 31,2011 27,000 What are the total assets of the company at December 31, 2011?

Presented below is selected financial information for Stanley's Bike Shop. Using the appropriate information, prepare its balance sheet at December 31, 2011.

The description of the relation between a company's assets, liabilities and equity, which is expressed as Assets = Liabilities + Equity is known as the:

Reebok's net income of $119 million and average assets of $1,400 million results in a return on assets of 8.5%.

Ending Liabilities are 67,000, Beginning Equity was $87,000, Common Stock sold during year totaled $31,000, Expenses for the year were $22,000, Dividends declared totaled $13,000, Ending Equity for the year is $181,000 and Beginning Assets for the year were $222,000. What was Net Income for the year?

Beginning Assets were $437,600, Beginning Liabilities were $262,560, Common Stock sold during the year totaled $45,000, Revenue for the year was $414,250, Expenses for the year were $280,000, Dividends declared was $22,700, and Ending Liabilities is $$350,000. What is Net Income for the year?

The income statement reports on operating activities at a specific point in time.

A parcel of land is offered for sale at $600,000 is assessed for tax purposes at $500,000 is recognized by its purchasers as easily being worth $575,000 and is purchased for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

How does the going-concern principle affect the reported asset values of a business?

Internal users of accounting information include lenders, shareholders, brokers and managers.