College Acct 1- Chapters 1-3 Review

Front

A company's balance sheet shows: cash $22,000, A/R $16,000, office equipment $50,000 and accounts payable $17,000. What is the amount of stockholders' equity?

Back

$71,000

Front

If a company uses $1,300 of its cash to purchase supplies, what would be the effect on the accounting equation?

Back

One asset account increases $1,300 and another asset decreases $1,300, causing no effect.

Front

Distribution of cash or other assets by a business to its stockholders (owners) are called:

Back

Dividends

Front

Baylor Inc. had income of $144 million and average total assets of $1,800 million. Its return on assets is:

Back

8.0%

Front

Determine the net income for the month: Salaries Expense $180,000, Interest Expense $10,000, Rent Expense $20,000 and Consulting Revenue $400,000.

Back

$190,000

Front

Which account principle would require Stuart Co. to record the building on its records at $300,000?

Back

Measurement (Cost) Principle

Front

Resources a company owns or controls that are expected to yield future benefits are:

Back

Assets

Front

If assets are $100,000 and liabilities are $32,000, then equity equals:

Back

$68,000

Front

If a company paid $22,000 of its accounts payable in cash, what was the effect on the accounting equation?

Back

Assets decrease $22,000 and liabilities decrease $22,000 (no change to equity)

Front

What is the account that is used to record an owner's investment in the business?

Back

Common Stock (Contributed Capital)