\text { Sales } & \$ 567,000 \\ c. $49,000 Rental revenue Given the following list of accounts, identify which are classified as assets. A(n) ______ is a business owned by two or more partners. 8. Place the following ethical decision making steps in the correct order: a. Expenses: Decrease equity and are the cost of assets or services used to earn revenue LO 1.2 Financial accounting information ________. Statement of Cash Flows: Identifies the cash inflows and outflows over a period of time. The firm just learned of its successful bid to audit Morrison's reports. Which organization has the legal authority to create Generally Accepted Accounting Principles? She would record this transaction in the accounting equation by which of the following? a. SEC d. accept the assignment after promising the partner that she will maintain the highest ethical standards with regards to the decisions that she makes with regards to the figures set forth in Morrison's reports. Dividends cause a(n) (increase/decrease) in equity and are recorded directly in the (retained earnings/dividends/equity) account. Match each of the descriptions with the term or phrase it best reflects. c. $25,000 Demonstrate how to record this transaction in the accounting equation. b. \text { Selling, General, and Administrative Expenses } & \underline{(488,000)} \\ Accounts receivable, net income, and dividends As an increase to common stock on the balance sheet, The primary objective of financial accounting is to: If No Leak bids the disposal job at$85, on what percentage of such jobs will the actual time required exceed the time for which it will be getting paid? Expenses- Record this transaction in the accounting equation by: increasing Supplies, and increasing Accounts Payable. The relation of assets, liabilities and equity is reflected in the equation. b. pressure Which of the following accounts would appear on an income statement? Given the statements below, choose the most accurate definition of owner investments. h. marketing managers - internal users b. cash from operating activities - CF Which of the following statements is correct regarding owner investments? $15,000 3. principle Some of these branches of accounting are important to small businesses. a. means that accounting information reflects a presumption tha tthe business will continue operating instead of being closed Record this transaction in the accounting equation for Russell's Consulting Service by: increasing both Cash and Accounts Receivable; and increasing Revenues. e. service managers - internal users Assets =Liabilities + Common stock - Dividends + Revenue - Expenses Internal users of accounting information ___________ in managing and operating an organization. developing data warehouses to compare employees' skills with the firm's needs. a. SEC - Recognition and measurement - Internal The IASB issues IFRS that identify preferred accounting practices. d. Income Statement, Statement of retained earnings, Balance sheet, and Statement of cash flows. SimplifiedIncomeStatementSalesDepreciationExpenseSelling,General,andAdministrativeExpensesOperatingIncomeTaxExpenseNetIncomeAmount$567,000(52,000)(488,000)27,000(8,000)$19,000. The claims of the owners on the assets of a business. LO 11.1 Capital investment decisions often involve all of the following except ________. These standards, known as the generally accepted accounting principles ( GAAP ), are a set of concepts, conventions, assumptions and principles followed by accountants. Which statement below defines why accounting information is useful? d. Factory 2. Dividends of $60 cash are paid to the corporation's stockholders. d. Taxation. The principle which states that a company should record expenses it incurred in the same period as the revenue it generated is known as the ______. $13,000 Accounting information impacts businesses only. 1. Revenues are the sales of products or services to customers by a business. a. business entity assumption $87,000 = _________+$46,000 Make ethical decision An employee that has unpaid bills might exhibit the following fraud factor: Pressure Identify which of the following statements is correct as to why accounting is important. 5. D. Collect, summarize, and communicate information. LO 1.2 External users of financial accounting information include all of the . What effect, if any, does this event have on the company's accounting equation as of January 31? The remainder of the bill was on credit. Record this transaction in the accounting equation by: When supplies are purchased on credit it means that: - a liability has been incurred. The statement of retained earnings explains changes in equity from net income (or loss) and from any ______ over a period of time. Accounting information systems, or AIS, is the system by which a company collects, stores and processes its financial and accounting data. Rent Revenue Documentation and verification of internal controls. The concepts and rules that govern financial accounting practice. .2 & .2 &.3 & .3 - External d. provide information on both the costs and benefits of looking after products and services During September, Sally's Hair Salon purchased $900 of supplies on account. - company computers are not password protected 1). e. paying off a loan, If assets are $300,000 and liabilities are $192,000, then equity equals: The revenue recognition principle states that revenue is recognized when: goods or services are provided to customers. A company pays monthly office rent of $1,500 in cash. a. customers 5.Should we spend additional money for redesign of our product? If expenses increase, then total equity decreases. a. Which statements below define a liability? True or false: Both U.S. GAAP and IFRS include similar guidance for accounting. External users of accounting information are ____________ in running the organization. d. Factory - B c. Rent payable When using the accounting equation, recording the purchase of equipment for cash would include an increase to the (Cash/Equipment/Supplies) account and a decrease to the (Cash/Equipment/Supplies) account. What a business owns will always equal what it owes to creditors and owners. - Cash Accounts receivable, net income, and dividends a. serve the decision-making needs of internal users True or False: The date line of a balance sheet depicts a specific day and not a period of time. - Statement of Retained Earnings, 1. Common Stock, Equipment, Accounts Payable. h. Advertising expense - I, Identify each of the following items as revenues, expenses, or dividends from the drop down provided. d. a decrease of $30,000 The accounting assumption that presumes the life of a company can be divided into time periods is called the: A ______ is a business entity owned by one person. To record this transaction on 6/25: Supplies would be increased by $______; Cash would be decreased by $______ and Accounts Payable would be increased by $______. The accounting process is the recognition or nonrecognition of business activities as accountable events. An experiment has four equally likely outcomes: E1,E2,E3E_1, E_2, E_3E1,E2,E3, and E4E_4E4. b. business entity assumption objectivity principle a. Jackson would decrease (expenses/cash/revenues) and increase (expenses/equity/revenues) in the accounting equation. d. Analyze options; Make ethical decision; Identify ethical concerns. 4. The FASB conceptual framework consists of all of the following except: Multiple choice question. b. expense recognition (matching) principle c. nonexecutive employees - external users - Increase equity and are the assets earned from a company's earning activities After welcoming her to the office on her first day, the partner managing the Chicago office shares some great news. Buildings e. assets increase $1,300 and liabilities increase $1,300, b. one asset increases $1,300 and another asset decreases $1,300, causing no effect, An example of an operating activity is: It identifies, records, and communicates business transactions. Suppose the time it takes a plumber working for No Leak Plumbing to remove a broken sink disposal and to install a new unit is normally distributed with a mean equal to 47 minutes and a standard deviation equal to 12 minutes. 1. Boaz Company had beginning of year assets of $100 million and end of year assets of $120 million. b. statement of retained earnings Match each item on the left with its correct definition on the right. b. IASB Research and development executive - Internal pastor | 89 views, 2 likes, 0 loves, 5 comments, 1 shares, Facebook Watch Videos from First Baptist Church of Woodbridge: Join us for worship and a. Accounting information is used to do all of the following except: MULTIPLE . decreasing Accounts Receivable, $400. Identify the main sections on a statement of cash flows. The Accounts Payable account is a(n) ______ account. d. stock issuances Accounting information is based on actual cost. Each of the following are areas of accounting opportunities except. Service revenue - Accounts Payable f. Cash from operating activities - CF Define what the income statement reports by completing the following sentence: The income statement describes a company's ______ and ______ along with the resulting net income or loss over a period of time due to earnings related activities. elements qualitative characteristics . c. presumes that the life of a company can be divided into time periods, such as months and years, and that useful report for those periods f. regulators d. labor unions - external users provides investors guarantees about the future. Owner investments cause a(n) ______ in equity. c. statements of cash flows In every financial statement, there exists single and double underlines. - Taxes Payable. P=ABCD10.1.201.2.200.6.300.1.3ABCD. An income statement reports a company's net income or net loss during a period. Click here until go to the table of contents.In 2021, China's President Xi Jinping sent an congratulatory message to Bangladesh about the 50th anniversary of their independence so encapsulates mutual aspirations for stronger ties in an age of great power tournament . A group that sets accounting principles in the United States. a. cost-benefit This "Call for experts" provides information about the advisory group in question, the expert profiles being sought, the process to express interest, and the process of selection . The terms Internet telephony, broadband telephony, and broadband phone service specifically refer to the provisioning of communications services (voice, fax, SMS, voice-messaging) over the Internet, rather than via the public switched telephone network (PSTN), also known as plain old telephone service (POTS). An amount owned. On 8/1, supplies costing $500 were purchased on credit. Wages payable If Neros pays a cash dividend to its sole stockholder to pay for a family vacation, how is this reported on the financial statements? Investments-, - Decrease equity and are the cost of assets or services used to earn revenue Human resources executive Which of the following statements below lists the rules of entering transactions into the accounting equation? c. business entity \text { Net Income } & \$ 19,000 \\ - Accounts Payable All of the following are part of the FASB conceptual framework: - Qualitative characteristics c. Managerial accounting d. land f. revenue recognition principle, Identify which accounting principle or assumption best describes each of the following practices: The personnel, procedures, technology, and records used by an entity to develop accounting information and communicate this information to decision makers. Which of the following statements is/are true regarding the effect of revenues on the equity of a business? The total of everything owned by a business must always equal the total of what the business owes to creditors and owners. The four basic financial statements are: e. taxes payable c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. ABC Co. would increase the Accounts ______ account and increase the ______ account in the accounting equation. When recording transactions into the accounting equation, which of the following statements are correct? Overview [ edit] c. FASB Sales b. Note payable - liabilities a. d. going concern The accounting equation can be out of balance only when payment will be received at a future date. Assets = Liabilities + Equity Identify the correct assumption for each of the following activities using the drop-down list. Statement of Cash Flows. Record this transaction in Jackson's accounting equation by: On May 1, Mary's Morsels Company provided catering services at a wedding. c. equipment was purchased for cash 4. conservatism, 1. assumption Accountants tend to specialize in one branch. b. purchasing office equipment 2. business entity b. cash from operating activities a. An amount owed to a creditor \end{array} It identifies, records, and communicates business transactions. The business must record this event, which would decrease cash and decrease equity on January 31. Internal events b. financial statements. Identify the correct principle for each of the following activities using the drop-down list: Supplies Which of the following statements describes the effect of expenses on equity? Which of the following caused that effect? If a customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction into the accounting equation by: increasing Cash and decreasing Accounts Receivable. The business must record this event, which would decrease cash and increase equity on January 31. - the Accounts Payable account will be increased. The majority of accounting opportunities are in the area of _____ accounting. Identify the correct items from the list below. Income Statement, Sheet of retained earnings, Balance statement, and Statement of cash flows. Sally Smith decided to start a sea shell business organized as a corporation. Cash flows from operating activities Land - assets. A creditor's claims against the assets of a business. Bob's Bakery is making a partial payment of $70 for baking supplies it purchased in a previous month. Investments Owner investments cause a(n) _____ in equity. Match each of the descriptions with the term or phrase it best reflects. Assuming that Gail wants to make an ethical decision in this situation, she will: Identify the correct assumption for each of the following activities using the drop-down list. d. Dividends, beginning retained earnings, ending retained earnings, Identify which items belong on the statement of retained earnings: h. total liabilities and equity - balance sheet. Each of the following are areas of accounting opportunities except. On 8/1, supplies costing $500 were purchased on credit. k. legislators Record this transaction in the accounting equation. a. directors The company name. b. cash from operating activities Record this transaction in the accounting equation for Russell's Consulting Service by: increasing both Cash and Accounts Receivable; and increasing Revenues. d. income statement Expenses decrease equity. 1. Which of the statement(s) below define(s) an asset? g. revenues - income statement - officers are told to show rising income or risk layoffs Dividends: Decrease equity and are the assets removed from the company and paid to the stockholders. b. pressure Jack Pickle decided to start a small business as a corporation. The expanded accounting equation is defined as: ________________ = Liabilities + Common Stock + ________________ - __________________ - Dividends. & 24,561.78\\ c. What is the probability that any three of the outcomes occur (e.g., E1E_1E1 or E2E_2E2 or E4E_4E4 )? - Decrease equity and are the assets removed from the company and paid to the stockholders. How will this transaction affect the accounting equation? i. utility boards The four major types of transactions that affect equity in a business are ______ accounts, ______ accounts, dividends and common stock. - Wages Expense pressure, incentive, or financial pressure b. With its great mobile experience, PayNearMe's technology provides a simple way for businesses to collect payments through an intuitive, consistent . And each has its own specialized use. Expenses decrease equity. b. Given the following lists of accounts, choose the one that contains only liabilities. c. decline the assignment; even though she only owns a single share of stock, that direct investment in the stock of Morrison would cast doubt on decisions that she makes during the audit. 3. Computer equipment f. legal expense e. full disclosure Land, 1. d. Dividends, beginning retained earnings, ending retained earnings, b. When supplies are purchased on credit it means that: a liability has been incurred. Other names for equity in a corporation include: Which of the following statements best represents the reason for the accounting equation? Identify which of the following lists of accounts would belong on the statement of retained earnings. 8. Equity will be decreased. His initial investment was $4,000 cash in exchange for common stock. a. liabilities l. government officials - external users a. opportunity 4.Shareholder - External Preparing and entering a list of checks issued. An income statement reports a company's net income or net loss during a period. Which of the following accounts of Xenmix would be considered a liability? A customer of Landen Consulting Company makes a $400 payment of cash on a bill for services provided last month. Accounts receivable, net income, and dividends Taxes Payable, Accounts Payable, Wages Payable. A company reports the details behind financial statements that would impact user's decisions. Show how to record this transaction in the accounting equation of Melton's Door Company. The date line shows a specific date. Increase Cash by $4,000; Increase Common Stock by $4,000. h. common stock - B, ACCOUNTING 301 Chapter 1 Practice Concept Ove. d. expenses - income statement g. note payable C \\ b. provide accounting information that serves external users 6. GAAP serves to remove confusion and encourage uniformity and consistency in accounting practices. True or false: By definition, owner investments increase equity and are called stock issuances. The company bills at $75.00 for the first 30 minutes and$2.00 per minute for anything beyond 30 minutes. Record the October transaction into Sally's accounting equation by: - decreasing Accounts Payable, $200. d. taxes expense Identify the type of activity by choosing the best answer for each question.Select each item listed below as being an identifying, recording, or a communicating activity: Record this transaction in the accounting equation of Bob's Bakery by decreasing the Accounts (Payable/Receivable/Supplies) account and decreasing the (Cash/Supplies) account. A company's obligation to provide assets, products or services to others. The heading of every financial statement contains several line items. g. Legal expense - I Identify the correct principle for each of the following activities using the drop-down list: Sally Smith decided to start a sea shell business organized as a corporation. 4.Should we buy, hold, or sell a company's stock? Identify which of the following lists of accounts would belong on the statement of retained earnings. - Building. 1. financial managerial regulators taxation g - 23837261 mbjj4519 mbjj4519 05/28/2021 Advertisement - Cash Johna's Plant Nursery Company pays the salaries of its two employees. summarizes what has already occurred. ocean township police hiring. One Owner Allowed - Yes; No; Yes; Yes e. advertising expense for the month was paid in cash, e. advertising expense for the month was paid in cash, Which of the following accounts is not included in the asset section of the balance sheet? d. Because the bill is set aside for payment in February, there would be no effect on the accounting equation as of January 31. c. The business must record this event, which would increase liabilities and decrease equity on January 31. Record this transaction on May 1 in the accounting equation of Mary's Morsels by: increasing Accounts Receivable and increasing Revenue. 21. Which of the following statements explain(s) how the accounting equation applies to businesses? Cost of sales - expenses a. The date line shows a specific date. d. measurement (cost) principle b. external (independent) auditors Advertisement - expenses Which of the following is a proper reflection of the sequence of steps when deciding on the preferred course of action in making an ethical decision? Resources controlled by the business. The accounting equation must always remain in balance so that assets always equal the sum of liabilities and equity. b. f. net decrease (or increase) in cash Interpreting information from financial reports, Identify the type of activity by choosing the best answer for each question.Select each item listed below as being an identifying, recording, or a communicating activity: c. expenses This area of accounting includes offering tax advice and auditing services: Public accounting Business regulation and law enforcement: Government and not-for-profit agencies This area of accounting is where employees work for businesses: Private accounting A company that loans money to an organization is a (n) lender - Internal Users of accounting information can be divided into two main groups. 6.Which firm reports the highest sales and income? $192,000 Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. Income Statement, Statement of earnings, Balance statement, and Statement of cash flows. Using a cash register to enter sales, Identify the type of activity by choosing the best answer for each question.Select each item listed below as being an identifying, recording, or a communicating activity: - Green Cleaners Inc. purchased bleach for an upcoming job. 40,000 = 16,000 + 20,000 - 0 + _________ - 8,000 a. going-concern assumption Investments: Increase equity and are assets an owner puts into the business. 1. Preparing financial statements for creditors, The recording of transactions and events only, either manually or electronically. b. - Notes Payable 2.Should we make a five-year loan to that business? b. pressure c. general accounting principle Retained earnings, 12/31 1. An employee that is having trouble paying his personal bills might exhibit the following fraud factor: What are Generally Accepted Accounting Principles? c. an increase of $30,000 b. external (independent) auditors - external users beliefs that distinguish right from wrong and accepted standards of good and bad behavior. a. accounting equation c. general accounting principle Obligations to provide assets, products or services to others. The Accounts Payable account is a(n) ______ account. Which of the following statements below lists the rules of entering transactions into the accounting equation? Users who do not directly run the organization and have limited access to accounting information are known as _____ users. ___________ = 25,000 + 70,000 Record this transaction on May 1 in the accounting equation of Mary's Morsels by: increasing Accounts Receivable and increasing Revenue. Record this transaction into the accounting equation of Landen Consulting by: decreasing Accounts Receivable, $400 b. pressure Generally accepted accounting principles (GAAP) wants information to have: The ______ principle states that accounting information is based on actual cost. a. balance sheet An amount owned Jean sets it aside because she does not plan to pay the bill until its due date of February 15. The company name is listed at the top of the heading. Wages payable - liabilities b. c. Rent payable - B Summary. h. revenue recognition, a. cost-benefit - constraint f. revenue recognition principle, b. expense recognition (matching) principle, Identify which accounting principle or assumption best describes each of the following practices: When a business provides a service to a customer "on credit", it means that: - the business will receive payment for its services at a later time. l. government officials At the end of the year, the company's equity totaled: a. decline the assignment because of the fact that it is her first day and she is not in a position to accept such a challenging assignment. b. pressure Accounts receivable, net income, and dividends Identify the type of activity by choosing the best answer for each question.Select each item listed below as being an identifying, recording, or a communicating activity: Assets = Liabilities + Equity The accounting assumption which presumes that a business will continue operating is called the: From the following statements, identify the correct definition of a liability. Assets = Liabilities + Common Stock - Dividends + Revenues - Expenses. a. business entity assumption Research and development executive Suppose the going rate for this procedure by other plumbing shops in the area is $85.00, not including the cost of the new equipment. should be incomplete in order to confuse competitors. The constraint that states that information disclosed by the entity must have benefits to the user which are greater than the costs of providing it is called: Identify the correct definition of an asset: An asset is something of value that a business owns or controls. f. Cash from operating activities Revenues or Revenue c. objectivity principle Identify the fraud risk factor in each of the following situations: Marketing new products and services. Which of the following accounts would appear on an income statement? c. FASB d. Dividends, beginning retained earnings, ending retained earnings, d. Dividends, beginning retained earnings, ending retained earnings, Identify which items belong on the balance sheet: Revenues that increase equity have many forms, such as consulting services and commissions from services. The fraud triangle consists of three components: (1) Opportunity, (2) Incentive, and (3) Rationalization. Define Forensic Accounting Investigate methods, collecting data, analyzing data, communicating the results What is meant by a forensic accountant's mindset Not accepting information without proof, wants indisputable evidence What are the three essential characteristics/skills possessed by a forensic accountant Critical thinking, reasoning, mindset Identify the fraud risk factor in each of the following situations: Given the following lists of accounts, choose the one that contains only liabilities. The statement reports the financial position of a company at a point in time. c. going-concern assumption Qualitative characteristics Assets or asset This demands ethical behavior in accounting . - Objectives. The FASB conceptual framework consists of all of the following except: The principle which states that accounting information is based on actual cost is called the ______. $714,789.4324,561.78+7147.93\begin{array}{r r} As a dividend on the statement of retained earnings. Multiple Choice Question Each of the following are areas of accounting opportunities except O taxation O regulators managerial O financial Previous question Next question This problem has been solved! The definition of expenses includes which of the following statements? e. service managers 7.Production supervisor - Internal Wages Expense Given the following list of accounts, identify which are classified as liabilities. Accounts Payable. Each of the following are areas of accounting opportunities except Multiple choice question. Assuming that Soccer Emporium is an IFRS reporter that reconciles operating income to operating cash flows. True or false: Return on assets is computed as Net Income divided by Total Assets. a. Recognition and measurement. Land 6. c. Identify ethical concerns; Analyze options; Make ethical decision. Identify the fraud risk factor in each of the following situations: Russell's Consulting Services Company provided $1,000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. Analyze options 3. Which of the following statements is/are true regarding the effect of revenues on the equity of a business? 6. should be prepared differently by each company. - Rent Expense e majority of accounting opportunities are in the area of private accounting. Given the list of accounts below, identify which of them would appear on a balance sheet. b. means that we can express transactions and events in monetary, or money, units 6.Creditor - External Equipment business activities requires that we prepare accounting reports such as financial statements, which we analyze and interpret. 6.Which firm reports the highest sales and income? - Accounts Receivable To record the purchase of supplies for cash, the correct entry into the accounting equation would include an increase to (Equipment/Supplies/Cash) and a decrease to (Equipment/Supplies/Cash). 75,0000 = _____________ + 40,000 4.Should we buy, hold, or sell a company's stock? a. an increase of $80,000 The three factors that must exist for a person to commit fraud include ______, ______, and ______. a. (Obj. a. Resources controlled by the business Identify these two parts. The remainder of the bill went on account. a. a. paying wages Record this transaction in Jackson's accounting equation by: If a customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction into the accounting equation by: increasing Cash and decreasing Accounts Receivable. b. Postage expense - I Revenues increase equity. - Materiality is a function of the nature of the item and/or dollar amount, - The benefits of the information disclosed must be greater than the costs of providing the information, Identify the following terms/phrases as either an accounting principle, assumption, or constraint Which of the following except: Multiple increase the ______ account and increase the accounts ______ account making a payment... Account and increase the ______ account and increase the accounts ______ account company a! Of these branches of accounting information is based on actual cost she would record this in. 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