Exam 1: Accounting in Business

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

Strategic management is the process of determining the right mix of operating activities for the type of organization, its plans, and its markets.

Accounts payable appear on which of the following statements?

What is the balance sheet? What is its purpose?

Return on assets is also known as return on investment.

Creditors' claims on the assets of a company are called:

The first section of the income statement reports cash flows from operating activities.

An accounting information system communicates data to help businesses make better decisions.

What distinguishes liabilities from equity?

The statement of cash flows reports all of the following except:

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the:

Discuss the relation between risk and return.

There are at least three types of partnerships that limit the partners' liability. They are 1) _______________________, 2) __________________, and 3) ______________________.

Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.

Another name for equity is:

______________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services.

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?

The following schedule reflects shows the first month's transactions of the Bill Blue Real Estate Company: Provide descriptions for each transaction.