FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: An Introduction to Accounting

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 21

Essay

Review LaterAdd Note

Review Later

What is meant by the term "stakeholders?"

Correct Answer

verified

Stakeholders are the parties that are in...

View Answer

Show Answer

Question 22

Short Answer

Review LaterAdd Note

Review Later

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. $\begin{array}{lll}\text { Increase }=I & \text { Decrease }=D & \text { No Effect }=N\end{array}$ Greene Co. paid $211,000 cash in salaries to its employees. $\begin{array} { l }\begin{array}{|l|l|l|l|l|l|l|}\text { Assets }&\text {Liabilities}&\text { Equity }&\text {Revenues }&\text {Expenses }&\text { Net Income }&\text { Cash }\\\hline & & & & & & \\\hline\end{array}\end{array}$

Correct Answer

verified

(D) (N) (D) (N) (I) (D) (D)
Explanation:...

View Answer

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Petras Company engaged in the following transactions during 2012, its first year in operations: (Assume all transactions are cash transactions) 1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank. 3) Earned $600 of revenues. 4) Paid expenses of $250. 5) Paid a $50 dividend. During 2013, Petras engaged in the following transactions: (Assume all transactions are cash transactions) 1) Issued an additional $325 of common stock. 2) Repaid $220 of its debt to the bank. 3) Earned revenues of $750. 4) Incurred expenses of $360. 5) Paid dividends of $100. The amount of total equity on Petras' 2012 balance sheet is

An asset source transaction increases a business's assets and the claims to assets.

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. $\begin{array}{lll}\text { Increase }=\mathrm{I} & \text { Decrease }=\mathrm{D} & \text { No Effect }=\mathrm{N}\end{array}$ Vincent Co. provided services for $25,000 cash. $\begin{array} { l }\begin{array}{|l|l|l|l|l|l|l|}\text { Assets }&\text {Liabilities}&\text { Equity }&\text {Revenues }&\text {Expenses }&\text { Net Income }&\text { Cash }\\\hline & & & & & & \\\hline\end{array}\end{array}$

How does the payment of cash dividends to stockholders affect the accounting equation? Is it considered an asset source, asset use, or asset exchange transaction?

Each of the following requirements is independent of the others. a) Viking Corporation has liabilities of $85,000 and equity of $115,000. What is the amount of Viking's assets? _________________________________________________ b) Garibaldi Company has assets of $310,000 and liabilities of $95,000. What is the amount of Garibaldi's equity? ______________________________________________________ c) King Company has assets of $70,000 and liabilities of $25,000. What is the amount of King's claims? _____________________________________________________________

Petras Company engaged in the following transactions during 2012, its first year in operations: (Assume all transactions are cash transactions) 1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank. 3) Earned $600 of revenues. 4) Paid expenses of $250. 5) Paid a $50 dividend. During 2013, Petras engaged in the following transactions: (Assume all transactions are cash transactions) 1) Issued an additional $325 of common stock. 2) Repaid $220 of its debt to the bank. 3) Earned revenues of $750. 4) Incurred expenses of $360. 5) Paid dividends of $100. The amount of retained earnings on Petras's 2013 balance sheet is

If Boyd Company reported assets of $500 and liabilities of $200, Boyd's total claims totaled

Cohen Company experienced an accounting event that affected its financial statements as indicated below: $\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Assets } \\+\end{array} & = & \begin{array} { c } \text { Liab. } \\\text { NA }\end{array} & + & \begin{array} { c } \text { Equity } \\+\end{array} & \begin{array} { c } \text { Rev } \\\text { NA }\end{array} & - & \begin{array} { c } \text { Exp } \\\text { NA }\end{array} & = & \begin{array} { c } \text { Net } \\\text { Inc. } \\\text { NA }\end{array} & \begin{array} { c } \text { Cash } \\\text { Flow } \\+ \text { FA }\end{array} \\\hline\end{array}$ Which of the following accounting events could have caused these effects on Cohen's statements?

The Jefferson Company is a manufacturer of antique reproduction furniture. Which term best describes Jefferson's role in society?

An asset exchange transaction does not affect the total amount of claims to a company's assets.

In which section of a statement of cash flows would the payment of cash dividends be reported?

La Paz Company engaged in the following transactions during 2012, its first year in operation: (Assume all transactions are cash transactions) 1) Acquired $3,000 cash from issuing common stock. 2) Borrowed $2,200 from a bank. 3) Earned $3,100 of revenues. 4) Incurred $2,400 in expenses. 5) Paid dividends of $400. La Paz Company engaged in the following transactions during 2013: 1) Acquired an additional $500 cash from the issue of common stock. 2) Repaid $1,300 of its debt to the bank. 3) Earned revenues, $4,500. 4) Incurred expenses of $2,750. 5) Paid dividends of $640. The amount of total assets on La Paz's 2012 balance sheet was

"IASB" stands for

A business and the person who owns the business are separate reporting entities.

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. $\begin{array}{lll}\text { Increase }=I & \text { Decrease }=D & \text { No Effect }=N\end{array}$ Patterson Co. paid $50,000 cash to purchase land. $\begin{array} { l }\begin{array}{|l|l|l|l|l|l|l|}\text { Assets }&\text {Liabilities}&\text { Equity }&\text {Revenues }&\text {Expenses }&\text { Net Income }&\text { Cash }\\\hline & & & & & & \\\hline\end{array}\end{array}$

Which types of accounts are closed out to retained earnings at the end of an accounting period?

The value created by a business may be called income or earnings.

Which resource provider typically receives first priority when resources are divided as part of a business's liquidation?