Exam 1: Accounting in Action

Identify the impact on the accounting equation of each of the following transactions. 1. Purchase office supplies on account. 2. Paid secretary weekly salary. 3. Purchased office furniture for cash. 4. Received monthly utility bill to be paid at later time.

Van Occupanther is the bookkeeper for Roscoe Company. Van has been trying to get the balance sheet of Roscoe Company to balance. Roscoe's balance sheet is as follows.

The financial statement that summarizes the financial position of a company is the

The organization(s) primarily responsible for establishing generally accepted accounting principles is(are) the

In order to possess future service potential, an asset must have physical substance.

Auditing is

A dividend is

Barsuk Company began the year with stockholders' equity of $108,000. During the year, Barsuk issued stock for $147,000, recorded expenses of $420,000, and paid dividends of $28,000. If Barsuk's ending stockholders' equity was $290,000, what was the company's revenue for the year?

Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000. The net income reported by Mofro's Computer Repair Shop for the year was

Matador Company purchases $1,300 of equipment from Danger Mouse Inc. for cash. The effect on the components of the basic accounting equation of Matador Company is

Accountants refer to an economic event as a

The purchase of office equipment on credit increases total assets and total liabilities.

As of December 31, 2018, Calexico Company has assets of $42,000 and stockholders' equity of $20,000. What are the liabilities for Calexico Company as of December 31, 2018?

Which of the following is not a reason one set of international accounting standards are needed?

Presented below is information related to Anthony Scalici Company. Instructions Prepare the 2015 retained earnings statement for Anthony Scalici Company.

A net loss will result during a time period when

Expressing an opinion as to the fairness of the information presented in financial statements is a service performed by CPAs.

Generally accepted accounting principles are

The ________________ principle states that assets should be recorded at the value exchanged at the time the asset is acquired.