Exam 1: Accounting in Business

The accountant of Magic Video Games prepared a balance sheet immediately after each transaction was recorded. During September, the first month of operation, the following balance sheets were prepared: Required: Describe the nature of each of these five transactions for the month of September.

The basic financial statements include all of the following except:

Planning activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Return on assets is often stated in ratio form as the amount of average total assets divided by income.

Distributions of assets by a business to its owners are called:

The _______________ assumption requires that financial information is supported by independent, unbiased evidence.

Regulators often have legal authority over certain activities of organizations.

External users of accounting information include all of the following except:

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

U. S. Government Treasury bonds provide high return and low risk to investors.

The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls.

Internal users include lenders, shareholders, brokers and managers.

Ending capital reported on the statement of owner's equity is calculated by adding owner investments and net losses and subtracting net incomes and withdrawals.

A net loss occurs when revenues exceed expenses.

Cash investments by owners are listed on which of the following statements?

Technology

The income statement displays revenues earned and expenses incurred over a specified period of time due to earnings activities.

A limited partnership:

The difference between a company's assets and its liabilities, or net assets is:

A balance sheet lists: