Exam 1: An Introduction to Accounting

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase =I Decrease =D No Effect =N Greene Co. paid $211,000 cash in salaries to its employees. Assets Liabilities Equity Revenues Expenses Net Income Cash

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

What is meant by the term "stakeholders?"

Which types of accounts are closed out to retained earnings at the end of an accounting period?

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 retained earnings on Petras's 2013 balance sheet is

In which section of a statement of cash flows would the payment of cash dividends be reported?

A business and the person who owns the business are separate reporting entities.

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

How does the payment of cash dividends to stockholders affect the accounting equation? Is it considered an asset source, asset use, or asset exchange transaction?

If Boyd Company reported assets of $500 and liabilities of $200, Boyd's total claims totaled

The value created by a business may be called income or earnings.

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?

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = Decrease = No Effect = Vincent Co. provided services for $25,000 cash. Assets Liabilities Equity Revenues Expenses Net Income Cash

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase =I Decrease =D No Effect =N Patterson Co. paid $50,000 cash to purchase land. Assets Liabilities Equity Revenues Expenses Net Income Cash

Which resource provider typically receives first priority when resources are divided as part of a business's liquidation?

Each of the following requirements is independent of the others. a) Viking Corporation has liabilities of $85,000 and equity of $115,000. What is the amount of Viking's assets? _________________________________________________ b) Garibaldi Company has assets of $310,000 and liabilities of $95,000. What is the amount of Garibaldi's equity? ______________________________________________________ c) King Company has assets of $70,000 and liabilities of $25,000. What is the amount of King's claims? _____________________________________________________________

La Paz Company engaged in the following transactions during 2012, its first year in operation: (Assume all transactions are cash transactions) 1) Acquired $3,000 cash from issuing common stock. 2) Borrowed $2,200 from a bank. 3) Earned $3,100 of revenues. 4) Incurred $2,400 in expenses. 5) Paid dividends of $400. La Paz Company engaged in the following transactions during 2013: 1) Acquired an additional $500 cash from the issue of common stock. 2) Repaid $1,300 of its debt to the bank. 3) Earned revenues, $4,500. 4) Incurred expenses of $2,750. 5) Paid dividends of $640. The amount of total assets on La Paz's 2012 balance sheet was

"IASB" stands for

An asset exchange transaction does not affect the total amount of claims to a company's assets.

The Jefferson Company is a manufacturer of antique reproduction furniture. Which term best describes Jefferson's role in society?