FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Accounting and Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Debts owed by a business are referred to as

A) accounts receivables
B) expenses
C) stockholders' equity
D) liabilities

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Cash dividends

A) increase expenses
B) decrease expenses
C) increase cash
D) decrease stockholders' equity

E) A) and B)
F) C) and D)

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Payment for common stock by stockholder

Paying an account payable increases liabilities and decreases assets.

Which of the following is not a business transaction?

Which of the following would not normally operate as a service business?

The connecting link between the income statement and balance sheet

Revenues for the year totaled $162,000 and expenses totaled $174,000. The stockholders purchased $15,000 of common stock and were paid $6,000 in dividends during the year. What was the net income or net loss for the year?

At the end of its accounting period, December 31, of Year 1, Hsu's Financial Services has assets of $575,000 and stockholders' equity of $335,000. Using the accounting equation and considering each case independently, determine the following amounts. (a) Hsu’s liabilities as of December 31, of Year 1. (b) Hsu’s liabilities as of December 31, of Year 2, assuming that assets increased by $56,000 and shareholders' equity decreased by $32,000. (c) Net income or net loss during Year 2, assuming that as of December 31, Year 2, assets were $592,000, liabilities were $450,000, and there were no additional investments or dividends.

Net income and net profit do not mean the same thing.

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Received cash for providing services to customers

Which of the following groups of companies are all examples of a retail business?

Ramierez Company received its first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

If a building is appraised for $85,000, offered for sale at $90,000, and the buyer pays $80,000 cash for it, the buyer would record the building at $85,000.

List the five steps in the process by which accounting provides information to users.

Financial accounting provides information to all users, while the main focus for managerial accounting is to provide information to the management.

The assets and liabilities of Rocky's Day Spa at December 31 and expenses for the year are listed below. The stockholders' equity was $68,000 ($48,000 in Common Stock and $20,000 in Retained Earnings) at January 1. The shareholders invested in an additional $10,000 of common stock during the year. Net income for the year is $45,625. $\begin{array}{|l|c|l|r|}\hline \text { Accounts payable } & \$ 4,375 &\text { Spa operating expense } & \$ 23,760 \\\hline \text { Accounts receivable } &8,490& \text { Office expense } & 2,470 \\\hline \text { Cash } & 13,980& \text {Spa supplies } & 9,230 \\\hline \text { Fees earned } &???& \text { Wages expense } & 26,580 \\\hline \text { Spa furniture \& equipment } & 56,000& \text { Dividends } & 38,170 \\\hline \text { Computers } & 2,130 & \\\hline\end{array}$ ? Prepare a balance sheet for Rocky's Day Spa for the year ended December 31.

Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work.