Exam 1: Introducing Accounting in Business

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 the Ending Equity for the year?

Dividends are expenses of a business.

Which of the following is the primary purpose of accounting?

ParFour's total liabilities are $130,000 and its equity is $340,000. Calculate the company's total assets.

______________________ are procedures set up to protect company property and equipment, ensure reliable accounting reports, promote efficiency and encourage adherence to company policies.

Data for Madison Realty are as follows: Madison Realty paid dividends of $30,000 during 2011. From the above data, prepare Madison Realty's statement of retained earnings for the year ended December 31, 2011.

The balance sheet equation is:

Use the following information as of December 31 to determine equity.

Which of the following accounting principles dictates when expenses are recognized?

On December 15, 2010, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2011. Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2011 and not 2010?

Which of the following statements best describes the relationship of U.S. GAAP and IFRS?

The records of Skymaster Airplane Rentals show the following information as of December 31, 2011 Dividends of $52,000 were paid during 2011. Using the above information, prepare a statement of retained earnings for 2011

______________ is the area of accounting aimed at serving external users.

The four basic financial statements include the balance sheet, income statement, statement of retained earnings and statement of cash flows.

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 are the Ending Assets for the year?

A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000 and accounts payable $17,000. What is the amount of equity?

Generally Accepted Accounting Principles:

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Investing activities are the acquiring and selling of resources that an organization uses in its everyday operations.

Return on assets is: