Question 1

"GAAP" stands for

Accepted Answer

A)  Government Authorized Accounting Procedures. 
B)  Generally Applied Accounting Procedures. 
C)  Generally Accepted Accounting Principles. 
D)  Generally Authorized Auditing Principles. 
A)  Government Authorized Accounting Procedures. 
B)  Generally Applied Accounting Procedures. 
C)  Generally Accepted Accounting Principles. 
D)  Generally Authorized Auditing Principles.

Question 2

Yang Company reported the following balance sheet for the end of 2012:   
During 2013, Yang reported the following transactions:
• Repaid $8,000 to a local bank on a note payable
• Provided services to clients for $26,400 cash
• Paid operating expenses of $19,200
• Paid $3,500 cash dividends to stockholders
Required:
Prepare Yang Company's balance sheet as of December 31, 2013.

Accepted Answer

@#IMG-DLM&
Explanation: Ending balances: Cash ($59

Question 3

Stinespring Company was founded in 2012. It acquired $35,000 cash by issuing stock to investors and an additional $20,000 cash by borrowing from creditors. During 2012 it received $15,000 cash revenues and paid $22,000 in cash expenses. The company then went out of business.
Required:
a) Explain the term, "business liquidation."
b) What amount of cash should Stinespring Company have had on hand immediately before going out of business?
c) What amount of cash will Stinespring's creditors receive?
d) What amount of cash will Stinespring's stockholders receive?

Accepted Answer

a) Liquidation is the process of dividin

Question 4

The Ruiz Company began operations on January 1, 2013 and on that date issued $30,000 of common stock for cash. In addition, the company borrowed $20,000 from the bank. It provided services to its customers during 2013 and received $36,000 cash. During the year, it paid $40,000 cash for land, $10,000 for salaries, and $6,000 in cash dividends to the owners.
Required:
1) Write an accounting equation and record the effects of each transaction under the appropriate heading. (Use specific accounting titles below the statement elements)
2) Prepare an income statement and a balance sheet for the 2013 accounting period.

Accepted Answer

1) @#IMG-DLM& 2) Ruiz Company
Income Statement
For

Question 5

An asset source transaction increases a business's assets and the claims to assets.

Accepted Answer

A) True 
 B)False

Question 6

Indicate whether each of the following statements about equity is true or false.
_______ a) Operating expenses reported on the income statement increase retained earnings.
_______ b) Common Stock is a part of contributed or paid-in capital for a corporation.
_______ c) Retained earnings is increased by loans received from a bank.
_______ d) Dividends paid to stockholders decrease retained earnings.
_______ e) Owners' equity is the residual interest in the company resulting from the difference between assets and liabilities.

Accepted Answer

a) False b) True c) False d) True e) Tru

Question 7

The transactions listed below apply to Lovell Company for its first year in business. Assume that all transactions involve the receipt or payment of cash.
Transactions for the year 2012:
1) Issued common stock to investors for $15,000 cash.
2) Borrowed $8,000 from the local bank.
3) Provided services to customers for $18,000.
4) Paid expenses amounting to $11,400.
5) Purchased a plot of land costing $12,000.
6) Paid a dividend of $6,000 to its stockholders.
7) Repaid $4,000 of the loan listed in item 2.
Required:
(a) Fill in the headings to the accounting equation shown below.
(b) Show the effects of the above transactions on the accounting equation.

Accepted Answer

The answer of The transactions listed below apply to Lovell...

Question 8

What does a company's statement of cash flow tell you about the company?

Accepted Answer

The statement of cash flows tells how a

Question 9

Explain some of the accounting similarities and differences between not-for-profit organizations and for-profit businesses.

Accepted Answer

Similarities: Both types of organization

Question 10

Petras Company engaged in the following transactions during 2012, its first year in operations: (Assume all transactions are cash transactions)
1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $600 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.
During 2013, Petras engaged in the following transactions: (Assume all transactions are cash transactions)
1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.
The amount of total equity on Petras' 2012 balance sheet is

Accepted Answer

A)  $1,250. 
B)  $900. 
C)  $300. 
D)  $1,300. 
A)  $1,250. 
B)  $900. 
C)  $300. 
D)  $1,300.

Question 11

Indicate whether each of the following statements about financial statements is true or false.
_______ a) A cash dividend paid to stockholders is shown on the statement of cash flows.
_______ b) A cash dividend paid to stockholders is shown on the statement of changes in stockholders' equity.
_______ c) A cash dividend paid to stockholders is shown on the income statement.
_______ d) Among other things, the balance sheet shows how a company got its cash.
_______ e) Changes in retained earnings for the accounting period are shown on the income statement.

Accepted Answer

a) True b) True c) False d) False e) Fal

Question 12

Who are the three distinct types of participants in a market? Briefly describe the role of each group of participants.

Accepted Answer

Markets include consumers, conversion ag

Question 13

Indicate whether each of the following statements about financial statements is true or false.
_______ a) A cash dividend paid to stockholders is shown on the statement of cash flows.
_______ b) A cash dividend paid to stockholders is shown on the statement of changes in stockholders' equity.
_______ c) A cash dividend paid to stockholders is shown on the income statement.
_______ d) Among other things, the balance sheet shows how a company got its cash.
_______ e) Changes in retained earnings for the accounting period are shown on the income statement.

Accepted Answer

a) True b) True c) False d) False e) Fal

Question 14

Jiminez Company paid a $300 cash dividend. Which of the following choices accurately reflects how this event affects the company's financial statements? $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l |} 
\hline \text { Assets } & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } & \text { Cash Flow } \
\hline
\end{array}$$

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
$$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l |} 
\hline ( 300 ) & = & \text { NA } & + & ( 300 ) & \text { NA } & - & \text { NA } & = & \text { NA } & \text { (300) OA } \
\hline
\end{array}$$ 
A) 
  
B) 
  
C) 
  
D) 
$$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l |} 
\hline ( 300 ) & = & \text { NA } & + & ( 300 ) & \text { NA } & - & \text { NA } & = & \text { NA } & \text { (300) OA } \
\hline
\end{array}$$

Question 15

Name the group that has the primary authority for establishing U.S. GAAP.

Accepted Answer

Financial Accounting Standards Board
Exp

Question 16

At the end of 2013, retained earnings for the Bisk Company was $1,750. Revenue earned by the company in 2013 was $2,000, expenses paid during the period were $1,100, and dividends paid during the period were $500. Based on this information alone, retained earnings at the beginning of 2013 was

Accepted Answer

A)  $850. 
B)  $2,150. 
C)  $1,350. 
D)  $4,000. 
A)  $850. 
B)  $2,150. 
C)  $1,350. 
D)  $4,000.

Question 17

In a market, a company that manufactures cars would be referred to as a conversion agent.

Accepted Answer

A) True 
 B)False

Question 18

Cohen Company experienced an accounting event that affected its financial statements as indicated below: $$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Assets } \
+
\end{array} & = & \begin{array} { c } 
\text { Liab. } \
\text { NA }
\end{array} & + & \begin{array} { c } 
\text { Equity } \
+
\end{array} & \begin{array} { c } 
\text { Rev } \
\text { NA }
\end{array} & - & \begin{array} { c } 
\text { Exp } \
\text { NA }
\end{array} & = & \begin{array} { c } 
\text { Net } \
\text { Inc. } \
\text { NA }
\end{array} & \begin{array} { c } 
\text { Cash } \
\text { Flow } \
+ \text { FA }
\end{array} \
\hline
\end{array}$$ Which of the following accounting events could have caused these effects on Cohen's statements?

Accepted Answer

A)  Paid a cash dividend. 
B)  Earned cash revenue. 
C)  Borrowed money from a bank. 
D)  Issued common stock. 
A)  Paid a cash dividend. 
B)  Earned cash revenue. 
C)  Borrowed money from a bank. 
D)  Issued common stock.

Question 19

Vandever Company's balance sheet reported assets of $42,000, liabilities of $15,000 and common stock of $12,000 as of December 31, 2012. If Retained Earnings on the December 31, 2013 balance sheet is $18,000 and Vandever paid a $14,000 dividend during 2013, then the amount of net income for 2013 was which of the following?

Accepted Answer

A)  $17,000 
B)  $15,000 
C)  $3,000 
D)  None of these 
A)  $17,000 
B)  $15,000 
C)  $3,000 
D)  None of these

Question 20

Yi Company began operations on January 1, 2013. During 2013, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $38,000
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment costing $12,000
7) paid $3,000 dividends to stockholders
8) paid employees' salaries, $21,000
What is Yi's net cash flow from investing activities?

Accepted Answer

A)  Inflow of $40,000 
B)  Outflow of $37,000 
C)  Inflow of $28,000 
D)  Outflow of $12,000 
A)  Inflow of $40,000 
B)  Outflow of $37,000 
C)  Inflow of $28,000 
D)  Outflow of $12,000

"GAAP" stands for

An asset source transaction increases a business's assets and the claims to assets.

What does a company's statement of cash flow tell you about the company?

Explain some of the accounting similarities and differences between not-for-profit organizations and for-profit businesses.

Who are the three distinct types of participants in a market? Briefly describe the role of each group of participants.

Jiminez Company paid a $300 cash dividend. Which of the following choices accurately reflects how this event affects the company's financial statements? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow

Name the group that has the primary authority for establishing U.S. GAAP.

At the end of 2013, retained earnings for the Bisk Company was $1,750. Revenue earned by the company in 2013 was $2,000, expenses paid during the period were $1,100, and dividends paid during the period were $500. Based on this information alone, retained earnings at the beginning of 2013 was

In a market, a company that manufactures cars would be referred to as a conversion agent.

Cohen Company experienced an accounting event that affected its financial statements as indicated below: Assets + = Liab. NA + Equity + Rev NA - Exp NA = Net Inc. NA Cash Flow + FA Which of the following accounting events could have caused these effects on Cohen's statements?

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Cost Accumulation, Tracing, and Allocation

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters

Exam 1: An Introduction to Accounting

"GAAP" stands for

An asset source transaction increases a business's assets and the claims to assets.

What does a company's statement of cash flow tell you about the company?

Explain some of the accounting similarities and differences between not-for-profit organizations and for-profit businesses.

Who are the three distinct types of participants in a market? Briefly describe the role of each group of participants.

Jiminez Company paid a $300 cash dividend. Which of the following choices accurately reflects how this event affects the company's financial statements? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow

Name the group that has the primary authority for establishing U.S. GAAP.

At the end of 2013, retained earnings for the Bisk Company was $1,750. Revenue earned by the company in 2013 was $2,000, expenses paid during the period were $1,100, and dividends paid during the period were $500. Based on this information alone, retained earnings at the beginning of 2013 was

In a market, a company that manufactures cars would be referred to as a conversion agent.

Cohen Company experienced an accounting event that affected its financial statements as indicated below: Assets + = Liab. NA + Equity + Rev NA - Exp NA = Net Inc. NA Cash Flow + FA Which of the following accounting events could have caused these effects on Cohen's statements?

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Cost Accumulation, Tracing, and Allocation

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters