Exam 1: Accounting As a Form of Communication

Which one of the following is an assumption made in the preparation of financial statements?

Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee total liabilities increased by $31,000 and its owners' equity decreased by $53,000 during the year, what was the amount of its total assets at the end of the year?

A department store is an example of a manufacturer.

When an entity's revenues exceed its expenses for a period of time, the entity will report net income.

Several items from the financial statements of Standard Tires are listed below.Use the following answer choices to identify the type of account for each item listed.Place your answers in the space provided. -Long-term debt

Cross Country Busline is an example of a

______________________ consists of all activities necessary to provide the members of an economic system with goods and services.

The three types of business activities in which all corporations engage are _______________________, ______________________, and _____________________.

Match the following business forms with their characteristics below. -Need an agreement about contributions to the business

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes.Some terms may be used more than once, while others are not used at all. -The principle or rule that specifies the amount recorded for an asset upon acquisition.

Several items from the financial statements of Standard Tires are listed below.Use the following answer choices to identify the type of account for each item listed.Place your answers in the space provided. -Capital stock

Which of the following best describes the term "retained earnings"?

The Securities and Exchange Commission (SEC) is concerned with

Provided below is a list of important users of accounting information.Below the list are descriptions of a major need of each of the various users.Fill in the blank with the one user group that is most likely to have the need described to the right of the blank.Some user groups may be used more than once or not at all. -The profitability of each division of the company.

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

The outflow of assets resulting from the sale of products and services is called a(n)

The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31, 2016: ​ Sales revenue \ 165,000 Cash \ 30,000 Accounts receivable 14,000 Selling expenses 44,000 Equipment 42,000 Common stock 41,000 Accounts payable 12,000 Interest income 3,000 Salaries and wages expense 40,000 Cost of sales 51,000 Inventories 22,000 Prepaid expenses 2,000 Income taxes payable 5,000 Income taxes expense 18,000 Notes payable 20,000 Retained earnings ? ​ ​ -Read the information for Taryn Corporation.Prepare an income statement for Taryn Corporation in good form.

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes.Some terms may be used more than once, while others are not used at all. -Claims of the creditors against the assets of a company.

The natural progression in items from one statement to another and preparation of financial statements is best represented by the following order:

At December 31, 2016, the accounting records of Tasty Foods Corporation contain the following: Accounts payable \ 16,000 Accounts receivable \ 40,000 Land \ 240,000 Cash ? Capital stock ? Equipment \ 120,000 Buil ding \ 180,000 Notes payable \ 190,000 Retained earnings \ 160,000 ? If Cash is $26,000, what is the December 31, 2016 capital stock balance?