Opportunities in accounting include (three words)

(a)  

What is the primary responsibility of the FASB (Financial Accounting Standards Board)?

(a)  

What is the Expense Recognition Principle? a company ___ the expenses incurred to ___ the ___ reported

(a)  

What is the Revenue Recognition Principle? received ___ are provided to the ___ at the ___ expected to be ___

(a)  

What is the Full-Disclosure Principle? --> a company ___ the details behind ___ ___ that would impact a ___'s decisions

(a)  

What is the Measurement Principle? --> ___ information is based on ___ cost

(a)  

What is the Going-Concern assumption? --> accounting information presumes that the business will ___ operating instead of being ___ or ___

(a)  

What is a Business Entity? a business is ___ for separately from other ___ entities and its ___

(a)  

What is the Monetary Unit Assumption? ___ and ___ are express in ___ of ___

(a)  

What is Time Period Assumption? the life of the ___ can be ___ into specific time ___

(a)  

In simple terms, what is liability in terms of accounting?

(a)  

What do dividends reduce in terms of accounting?

(a)  

what does revenue do in terms of accounting?

It increases ___ ___.

(a)  

what do expenses do in terms of accounting?

They reduce the ___ ___.

(a)  

What does GAAP stand for?

(a)  

What are Retained Earnings?

what is left over after a ___ pays all of its ___ (i.e. reserve ___)

(a)  

In accounting, ___ ___ are objective and reliable evidence about ___ and ___ and their amounts (examples: sales receipts, checks, bills from supplies, etc.)

(a)  

What does account mean in accounting?

A record of increases and decreases in a specific ___, ___, ___, ___, or ___

(a)  

Bonus Note:

**For example if you were paying your ___, which is $1,000, that would be ___ on revenues for your ___, which in turn would ___ your credit in your ___, to balance the two**

(a)  

What is Double-Entry Accounting: used in ___ and ___ transactions // analysis of each transaction follows these four steps: (1) Identify transactions and ___ ___, (2) ___ the transaction using the accounting ___, (3) record the ___ entry, and (4) Post the ___

(a)  

What is the ___ Ratio?

Total ___ // Total ___

(a)  

In accounting, Land is:

an ___, and is a ___ in double-entry accounting.

(a)  

What is cash in accounting?

Cash is an ___, and a ___ in the double-entry accounting system.

(a)  

What is a Legal Expense in accounting?

A legal expense is an ___ (naturally), and is a ___ in the double-entry accounting system.

(a)  

What is Prepaid Insurance in accounting?

Prepaid Insurance is an ___, and a ___ in the double-entry accounting system.

(a)  

What is 'Accounts Receivable' in accounting?

Accounts Receivable is an ___, and a ___ in the double-entry accounting system.

(a)  

What is 'Tour Service Revenue' in accounting?

Tour Service Revenue is a ___, and a ___ in the double-entry accounting system.

(a)  

What is Unearned Revenue is accounting?

Unearned Revenue is a ___, and a ___ in the double-entry accounting system.

(a)  

What is 'Services Revenue' in accounting?

Services Revenue is a ___, and a ___ in the double-entry accounting system.

(a)  

What is Equipment in accounting?

Equipment is an ___, and a ___ in the double-entry accounting system.

(a)  

What is 'Notes Payable' in accounting?

Notes Payable is a ___, and a ___ in the double-entry accounting system.

(a)  

A company is considering purchasing a parcel of land that was originally acquired by the seller for $92,000. While the land is currently offered for sale at $164,000, it is considered by the purchaser as easily being worth $154,000, and is finally purchased for $151,000, the land should be recorded in the purchaser's books at:

(a)  

If a company uses $1,450 of its cash to purchase supplies, the effect on the accounting equation would be: one asset ___ $1,450 and another asset ___ $1,450, causing no effect.

(a)  

If a company receives $12,800 from a client for services provided, the effect on the accounting equation would be: ___ increases $12,800 and ___ increases $12,800.

(a)  

If a company purchases equipment costing $4,900 on credit, the effect on the accounting ___ would be: ___ increase $4,900 and ___ increase $4,900.

(a)  

If equity is $389,000 and liabilities are $185,000, then assets equal:

(a)  

If assets are $319,000 and liabilities are $190,000, then equity equates to:

(a)  

On May 31 of the current year, the assets and liabilities of Riser, Incorporated are as follows: Cash - $14,800, Accounts Receivable - $6,950; Supplies - $500; Equipment - $11,550; Accounts Payable - $8,850. What is the amount of equity as of May 31 of the current year?

(a)  

On August 31 of the current year, the assets and liabilities of Gladstone, Incorporated are as follows: Cash - $30,750; Supplies - $660; Equipment - $10,500; Accounts Payable - $9,200. What is the equity as of August 31 of the current year?

(a)  

Saddleback Company paid off $42,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? ___ decrease $42,000; ___ decrease $42,000.

(a)  

If Dallas Company billed a client for $26,000 of consulting work completed, the accounts receivable asset increases by $26,000 and (a)   increases $26,000.

Echo Company has assets of $626,000, liabilities of $263,000, and equity of $363,000. It buys office equipment on credit for $88,000. What would be the effects of this transaction on the accounting equation? ___ increase by $88,000 and ___ increase by $88,000.

(a)  

If the liabilities of a business increased $109,000 during a period of time and equity in the business decreased $47,000 during the same period, the assets of the business must have: ___ $____.

(a)  

If the assets of a business increased $111,000 during a period of time and its liabilities increased $78,000 during the same period, equity in the business must have: ___ $____.

(a)  

If the liabilities of a company increased $112,000 during a period of time and equity in the company decreased $38,000 during the same period, what was the effect on assets? Assets would have ___ by $____.

(a)  

Rush Company had net income of $380 million and average total assets of $1,920 million. Its return on assets (ROA) is:

(a)  

Cage Company had net income of $380 million and average total assets of $2,080 million. Its return on assets (ROA) is:

(a)  

Speedy Company has net income of $37,955 and assets at the beginning of the year of $219,000. Assets at the end of the year total $265,000. Compute its return on assets.

1st, the Average total assets = (Beginning of the year + End of the year) / 2 = $242,000. Then, the ROA = [($37,955, or net income, // $242,000)] = 0.157 ~~ (a)   %.

Cash: $65,000 -- Buildings: $183,000 -- Equipment: $214,000 -- Liabilities: $149,000. What is the Equity?

(a)  

Employee Salaries expense: $182,000 -- Interest Expense: $12,000 -- Rent Expense: $22,000 -- Consulting revenue: $408,000. What is equity?

(a)  

Zippy had cash inflows from operating activities of $71,000 -- cash outflows from investing activities of $56,000 -- and cash inflows from financing activities of $34,000. The net change in cash was:

(a)  

A company reported total equity of $171,000 at the beginning of the year. The company reported $236,000 in revenues and $178,000 in expenses for the year. Liabilities at the end of the year totaled $105,000. What are the total assets of the company at the end of the year?

1st, take the Rev. - Exp. ($236,000 - $178,000 = $58,000), then add $58,000 to $171,000, the beg. equity, because the $58,000 is the growth in money. This =s to $229,000. Then add that to lia., which equals to $ (a)   .

Account: Prepaid Rent

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Wages Payable

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Land

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Cash

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Legal Expense

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Prepaid Insurance

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Accounts Receivable

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Equipment

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Tour Service Revenue

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Unearned Revenue

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

Services Revenue

Type of Account: ___

Normal Balance: ___

Increase (Debit or Credit): ___

(a)  

What type of business organization is this?

Ownership of Zander Company is divided into 1,000 shares of stock. The company pays a business income tax. This is a/an (a)   .

What type of business organization is this?

Russell is the sole owner of Wilson Sports. The business is not a separate legal entity from Russell and the business ends with his death.

(a)  

What type of business organization is this?

Trent Company is owned by Trent Malone, who is personally liable for the company's debts.

(a)  

What type of business organization is this?

Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services.

(a)  

What type of business organization is this?

Vera is the sole owner of Tech Solutions. The business is a separate legal entity and does not pay an additional business income tax.

(a)  

What type of business organization is this?

Jeffy Auto is a separate legal entity from its owner, but it does not pay a business income tax.

(a)  

What type of business organization is this?

Harvey and Louis own NYC Law. Harvey and Louis are jointly liable for partnership debts.

(a)  

What type of business organization is this?

Physio Products does not pay a business income tax and has one owner. The owner has unlimited liability for business debt.

(a)  

Total assets: Beginning of the year: $55,200. End of the year: $86,500

Total liabilities: Beginning of the year: $24,600. End of the year: $37,600

a. Additional common stock of $5,600 was issued, and dividends of $9,600 were paid during the current year.

b. Additional common stock of $15,650 was issued, and no dividends were paid during the current year.

c. No additional common stock was issued, and dividends of $14,600 were paid during the current year.

A: Net income loss: $____

B: Net income loss: $____

C: Net income loss: $____

(a)  

Transaction: (1) Cash received from sale of building. (2) Cash received from customer. (3) Cash paid for this month's rent. (4) Cash paid for manager salaries. (5) Cash received from sale of land. (6) Cash received from client for performing services.

Statement of Cash Flow Strategy: (1) Cash flows from ___ activities. (2) Cash flows from ___ activities. (3) Cash flows from ___ activities. (4) Cash flows from ___ activities. (5) Cash flows from ___ activities. (6) Cash flows from ___ activities.

(1) Cash ___. (2) Cash ___. (3) Cash ___. (4) Cash ___. (5) Cash ___. (6) Cash ___.

(a)  

Terrell Company reported the following data at the end of its first year of operations on December 31.

Equipment: $24,000. Accounts payable: $13,000. Common stock: $28,000. Dividends: $11,000. Services revenue: $66,000. Rent revenue: $15,000. Salaries expense: $43,000. Advertising expense: $9,000. Utilities expense: $7,000. Prepare its yearly income statement. Revenues --> Services Revenue: $___. Rent Revenue: $___. Total Revenue: $___. Expenses --> Salaries Expense: $___. Advertising Expense: $___Utilities Expense: $___. Total Expense: $___. Net income: $___.

(a)  

August 1: M. Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange for common stock.

August 2: The company paid $2,100 cash for an insurance policy covering the next 24 months.

August 5: The company purchased supplies for $880 cash.

August 20: The company received $3,331 cash from taking photos for customers.

August 31: The company paid $675 cash for August utilities.

August 1: Account: Cash. Debit: $___. Account: Equipment. Debit: $___. Account: Common Stock. Credit: $___.

August 2: Account: Prepaid Insurance. Debit: $___. Account: Cash. Credit: $___.

August 5: Account: Supplies. Debit: $___. Account: Cash. Credit: $___.

August 20: Account: Cash. Debit: $___. Account: Services Revenue. Credit: $___

August 31: Account: Utilities Expense. Debit: $___. Account: Cash. Credit: $___.

(a)  

A: The company paid $4,500 cash for payment on a 4-month-old account payable for office supplies.

B: The company paid $2,000 cash for the just-completed two-week salary of the receptionist.

C: The company paid $42,000 cash for equipment purchased.

D: The company paid $200 cash for this month’s utilities.

E: The company paid a $10,500 cash dividend to the owner (sole shareholder).

A: Accounts Payable -- Debit: $___. Cash -- Credit: $___.

B: Salaries Expense --Debit: $___. Cash -- Credit: $___.

C: Equipment -- Debit: $___. Cash -- Credit: $___.

D: Utilities Expense -- Debit: $___. Cash -- Credit: $___.

E: Dividends -- Debit: $___. Cash --Credit: $___.

(a)  

Activity Types:

Preparing and entering a list of checks issued: ___

Using a cash register to enter sales: ___

Entering a list of the sales invoices, including the prices and quantities, for the company's recordkeeper: ___

Interpreting information from financial reports: ___

Preparing financial statements for creditors: ____

(a)  

Users

Customers: ___ ___ ___. Purchasing Manager: ___ ___ ___. Marketing Manager: ___ ___ ___. Suppliers: ___ ___ ___. Labor Union: ___ ___ ___.

(a)  

___ ___ includes opportunities in general accounting, cost accounting and internal auditing.

(a)  

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?

(a)  

In the fraud triangle, when a person feels an incentive to commit fraud, this is referred to as (a)   .

Happenings that affect the accounting equation: Activities: ___.

Exchanges of value between two entities: Activities: ___ ___.

Exchanges within an entity: Activities: ___ ___.

(a)  

The four basic financial statements are:

(a)  

Identify what items belong on the income statement:

(a)  

Identify what items belong on the statement of retained earnings:

(a)  

Identify what items belong on the balance sheet:

(a)  

Identify which items belong on the statement of cash flows:

(a)  

Return on assets (_._._.) measures a company’s ability to generate an adequate return on its investment in: (a)   .

The return on assets for your small business was 11.2% last year and 12.6% this year. Your return on assets (ROA): (a)  

Rosalind Company reported revenues of $111,500, expenses of $92,545, and net income of $18,955 for the year. Assets totaled $200,000 at the beginning of the year and $246,000 at the end of the year. The company's return on assets for the year (round the percent to one decimal) is:

Return on Assets = $18,955 (net income) / [($200,000 + $246,000) / 2] <-- [[average total assets]] =

(a)