Question 1

A summary of cash flows for Alex Design Services for the year ended December 31, 2012, is shown below.
 $\begin{array}{ll}
\text { Cash receipts}\
\text { Cash received from customers } & \$ 83,990 \
\text { Cash received from additional investment by owner } & 25,000
\end{array}$  Prepare a statement of cash flows for Alex Design Services for the year ended December 31, 2012.

Accepted Answer

The answer of A summary of cash flows for Alex...

Question 2

Match between columns
                        Premises: General Motors
Dillards
Banana Republic
Applebee’s
Blockbuster
Best Buy
Sony
H & R Block
Time Warner Cable

Accepted Answer

The Answer of service and merchandising and manufacturing is...

Question 3

Explain the meaning of the business entity concept.

Accepted Answer

The answer of Explain the meaning of the business entity...

Question 4

On March 1, 2014, the amount of Norton Cook's capital in Cook's Catering Company was $150,000. During March, he withdrew $31,000 from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows:
$\begin{array}{ll}
\text{Accounts payable} & \$ 10,250 \
\text{Accounts receivable} & 45,950 \
\text{Cash} & 23,840 \
\text{Fees earned} & 64,950 \
\text{Insurance expense} & 1,275 \
\text{Land} & 85,400 \
\text{Miscellaneous expense} & 1,210 \
\text{Prepaid insurance} & 3,000 \
\text{Rent expense} & 9,000 \
\text{Salary expense} & 20,300 \
\text{Supplies} & 900 \
\text{Supplies expense} & 525 \
\text{Utilities expense} & 2,800 \
\end{array}$ Present, in good form, (a) an income statement for March, (b) a statement of owner's equity for March, and (c) a balance sheet as of March 31.

Accepted Answer

The answer of On March 1, 2014, the amount of...

Question 5

An example of an external user of accounting information is the federal government.

Accepted Answer

A) True 
 B)False

Question 6

A statement of owner's equity reports the changes in the owner's equity for a period of time.

Accepted Answer

A) True 
 B)False

Question 7

Two common areas of accounting that respectively provide information to internal and external users are:

Accepted Answer

A)  forensic accounting and financial accounting 
B)  managerial accounting and financial accounting 
C)  managerial accounting and environmental accounting 
D)  financial accounting and tax accounting systems

Question 8

The business entity concept means that

Accepted Answer

A)  the owner is part of the business entity 
B)  an entity is organized according to state or federal statutes 
C)  an entity is organized according to the rules set by the FASB 
D)  the entity is an individual economic unit for which data are recorded, analyzed, and reported

Question 9

The assets and liabilities of Amos Moving Services at March 31, 2014, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, 2013, the beginning of the current year. Mr. Amos invested an additional $25,000 in the business during the year.
 $\begin{array}{llll}
\text { Accounts Payable } & \$ 2,000 & \text { Miscellaneous Expense } &\$ 1,030\
\text { Accounts Receivable } & \$ 10,340 & \text { Office Expense } &\$1,240\
\text { Cash } & \$ 21,420 & \text { Supplies } &  \$1,670\
\text { Fees Earned } & \$ 73,450 & \text { Wages Expense } &\$23,550\
\text { Land } & \$ 47,000 & \text { Drawing }&\$16,570\
Building&\$ 157,630
\end{array}$ Prepare a statement of owner's equity for the current year ended March 31, 2014.

Accepted Answer

The answer of The assets and liabilities of Amos Moving...

Question 10

Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

Accepted Answer

The answer of Discuss internal and external users of accounting...

Question 11

The unit of measurement concept requires that economic data be recorded in a common unit of measurement.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Accounting and Business

For each of the following companies, select whether they are a service, merchandising, or manufacturing business.

Explain the meaning of the business entity concept.

An example of an external user of accounting information is the federal government.

A statement of owner's equity reports the changes in the owner's equity for a period of time.

Two common areas of accounting that respectively provide information to internal and external users are:

The business entity concept means that

Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

The unit of measurement concept requires that economic data be recorded in a common unit of measurement.