Question 1

What is stockholders' equity?

Accepted Answer

Stockholders' equity is the investor cla

Question 2

Which financial statement presents a summary of revenues and expenses of a business for a specific period of time,such as a month or year?

Accepted Answer

The answer of Which financial statement presents a summary of...

Question 3

Frey Company was founded January 1,2012.During 2012,the company experienced the following events:
1.earned cash revenue of $50,000.
2.paid cash expenses of $41,000.
3.issued common stock for $30,000 cash.
4.paid cash dividend of $2,000 to owners.
Required:
a)Write an accounting equation and record effects of each accounting event under appropriate general ledger account headings,showing dollar amounts of increases and decreases and totals at the end of the year.
b)Prepare the 2012 income statement and balance sheet for Frey Company.

Accepted Answer

The answer of Frey Company was founded January 1,2012.During 2012,the...

Question 4

The claims of a business's creditors are called

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  equity. 
D)  revenue. 
A)  assets. 
B)  liabilities. 
C)  equity. 
D)  revenue.

Question 5

Rodriguez Company was founded in 2010.It acquired $40,000 cash by issuing stock to investors and an additional $20,000 cash by borrowing from creditors.During 2010,it received $9,000 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 did Rodriguez Company have on hand immediately before going out of business?
c)What amount of cash will Rodriguez's creditors receive?
d)What amount of cash will Rodriguez's stockholders receive?

Accepted Answer

a)Liquidation is the process of dividing

Question 6

MNO Company paid $500 cash for salary expenses.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 7

Both liabilities and equity are sources of a business's assets.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following transactions is an asset use transaction?

Accepted Answer

A)  payment of cash dividends to owners 
B)  paying cash to acquire furniture 
C)  acquiring cash by issuing stock to owners 
D)  providing services to customers for cash 
A)  payment of cash dividends to owners 
B)  paying cash to acquire furniture 
C)  acquiring cash by issuing stock to owners 
D)  providing services to customers for cash

Question 9

Which financial statement reports the results of a business's operations?

Accepted Answer

A)  income statement 
B)  statement of changes in equity 
C)  balance sheet 
D)  statement of cash flows 
A)  income statement 
B)  statement of changes in equity 
C)  balance sheet 
D)  statement of cash flows

Question 10

Lemars Corporation paid $60,000 cash to purchase land.

Accepted Answer

- $60,000 cash flow

Question 11

Springer Company estimated that,at the end of the year,the market value of land (which Springer had purchased several months earlier)had increased by $8,000.

Accepted Answer

(N)(N)(N)(

Question 12

A business's equity is the future obligations of the entity.

Accepted Answer

A) True 
 B)False

Question 13

The income statement matches expenses and revenues.

Accepted Answer

A) True 
 B)False

Question 14

During 2010,Cruz Company earned $5,000 in cash revenue,incurred $3,200 in cash expenses,and paid $500 in cash dividends to its owners.Based on this information,

Accepted Answer

A)  retained earnings increased by $1,300 during the year. 
B)  net income was $1,300 for 2010. 
C)  the net cash flow from operating activities was $1,300 for the year. 
D)  total assets increased by $1,800 during 2010. 
A)  retained earnings increased by $1,300 during the year. 
B)  net income was $1,300 for 2010. 
C)  the net cash flow from operating activities was $1,300 for the year. 
D)  total assets increased by $1,800 during 2010.

Question 15

What are accounting events? What are transactions?

Accepted Answer

An accounting event is an economic occur

Question 16

Which of the following could describe the effects of an asset exchange transaction on a company's financial statements?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 17

The following events are for Fun Travel Services for the year 2012,the first year of operations.Assume that all transactions involve the receipt or payment of cash.
1)The business acquired $20,000 from stock issued to owners.
2)Creditors loaned the company $7,000.
3)The company provided services to its customers and received $35,000.
4)The company paid expenses amounting to $23,000.
5)Purchased land for $9,000.
6)The company paid a dividend of $3,000 to its owners.
Required:
a)Show the effects of the above transactions on the accounting equation.Use appropriate elements and account headings.
b)Prepare a balance sheet and income statement for the year 2012.

Accepted Answer

The answer of The following events are for Fun Travel...

Question 18

Fill in the blanks indicated by the alphabetic letters in the following financial statements.Assume that the company started operations in the current year and that all transactions were for cash.

Accepted Answer

(a)$4,000,(b)$7,000,(c)$7,000,

Question 19

What amount of cash did Hardin have at the end of 2010?

Accepted Answer

A)  $48,000 
B)  $56,000 
C)  $52,000 
D)  $67,000 
A)  $48,000 
B)  $56,000 
C)  $52,000 
D)  $67,000

What is stockholders' equity?

Which financial statement presents a summary of revenues and expenses of a business for a specific period of time,such as a month or year?

The claims of a business's creditors are called

MNO Company paid $500 cash for salary expenses.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Both liabilities and equity are sources of a business's assets.

Which of the following transactions is an asset use transaction?

Which financial statement reports the results of a business's operations?

Lemars Corporation paid $60,000 cash to purchase land.

Springer Company estimated that,at the end of the year,the market value of land (which Springer had purchased several months earlier)had increased by $8,000.

A business's equity is the future obligations of the entity.

The income statement matches expenses and revenues.

During 2010,Cruz Company earned $5,000 in cash revenue,incurred $3,200 in cash expenses,and paid $500 in cash dividends to its owners.Based on this information,

What are accounting events? What are transactions?

Which of the following could describe the effects of an asset exchange transaction on a company's financial statements?

Fill in the blanks indicated by the alphabetic letters in the following financial statements.Assume that the company started operations in the current year and that all transactions were for cash.

What amount of cash did Hardin have at the end of 2010?

Understanding the Accounting Cycle

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

Filters

Exam 1: An Introduction to Accounting

What is stockholders' equity?

Which financial statement presents a summary of revenues and expenses of a business for a specific period of time,such as a month or year?

The claims of a business's creditors are called

MNO Company paid $500 cash for salary expenses.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Both liabilities and equity are sources of a business's assets.

Which of the following transactions is an asset use transaction?

Which financial statement reports the results of a business's operations?

Lemars Corporation paid $60,000 cash to purchase land.

Springer Company estimated that,at the end of the year,the market value of land (which Springer had purchased several months earlier)had increased by $8,000.

A business's equity is the future obligations of the entity.

The income statement matches expenses and revenues.

During 2010,Cruz Company earned $5,000 in cash revenue,incurred $3,200 in cash expenses,and paid $500 in cash dividends to its owners.Based on this information,

What are accounting events? What are transactions?

Which of the following could describe the effects of an asset exchange transaction on a company's financial statements?

Fill in the blanks indicated by the alphabetic letters in the following financial statements.Assume that the company started operations in the current year and that all transactions were for cash.

What amount of cash did Hardin have at the end of 2010?

Understanding the Accounting Cycle

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

Filters