Exam 1: Accounting in Action

Fat Possum's Service Shop started the year with total assets of $330,000 and total liabilities of $2400,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. The net income reported by Fat Possum's Service Shop for the year was

Internal users of accounting information include all of the following except

The accounting process involves all of the following except

Ethics are the standards of conduct by which one's actions are judged as

The first part of the accounting process is

Management of a business enterprise is the major external user of information.

On January 1, 2015, Cat Power Company reported stockholders' equity of $705,000. During the year, the company paid dividends of $30,000. At December 31, 2015, the amount of stockholders' equity was $825,000. What amount of net income or net loss would the company report for 2015?

Accounting consists of three basic activities which are related to economic events of an organization. These include

Revenues are

The basic accounting equation cannot be restated as

Accountants record both internal and external transactions.

A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the

All of the financial statements are for a period of time except the

Stockholders' equity is increased by

The primary purpose of the statement of cash flows is to report

The cost and fair value of an asset are the same at the time of acquisition and in all subsequent periods.

Which of the following is an external user of accounting information?

Accountants do not have to worry about issues of ethics.

The first step in solving an ethical dilemma is to

Stockholders' equity is decreased by all of the following except