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Exam 1: Introduction to Accounting and Business

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Question 21

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Selected transactions completed by a proprietorship are described below. Indicate the effects of each transaction on assets, liabilities, and owner's equity by inserting "+" for increase and "-" for decrease in the appropriate columns at the right. If appropriate, you may insert more than one symbol in a column.

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Question 22

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Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May: Note: Each transaction has two entries.

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Question 23

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The initials GAAP stand for

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The capital of the owner was $68,000 at January 1, 2014. The owner invested an additional $10,000 during the year. Net income for 2014 is $45,625. Prepare an income statement for the current year ended December 31, 2014.

Profit is the difference between

Allen Marks is the sole owner and operator of Great Marks Company. As of the end of its accounting period, December 31, 2013, Great Marks Company has assets of $940,000 and liabilities of $300,000. During 2014, Allen Marks invested an additional $73,000 and withdrew $33,000 from the business. What is the amount of net income during 2014, assuming that as of December 31, 2014, assets were $995,000, and liabilities were $270,000?

The main objective of a not-for-profit business is to make a profit.

The total assets and total liabilities of Paul's Pools, a proprietorship, at the beginning and at the end of the current fiscal year are as follows:

Within the United States, the dominant body in the primary development of accounting principles is the

If total assets decreased by $88,000 during a period of time and owner's equity increased by $71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is

Assets are

What are the three sections of the Statement of Cash Flows?

The asset created by a business when it makes a sale on account is termed

There are four transactions that affect Owner's equity. (a) What are the two types of transactions that increase Owner's equity? (b) What are the two types of transactions that decrease Owner's equity?

An example of an external user of accounting information is the federal government.

The role of accounting is to provide many different users with financial information to make economic decisions.

Selected transaction data of a business for September are summarized below. Determine the following amounts for September: (a) total revenue, (b) total expenses, (c) net income.

Managerial accounting information is used by external and internal users equally.

On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $27,000; Accounts Receivable, $12,300; Supplies, $3,100; Land, $35,000; Accounts Payable, $13,900. What is the amount of owner's equity (John Wong's capital) as of July 1 of the current year?

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.