Exam 1: Business, Accounting, and You

Mandy's Web Design Company has the following account balances on December 31, 2013. Prepare the Income Statement for Mandy's Web Design Company for the month of December.

Based on the information provided, prepare the statement of retained earnings. 1. On June 1 2013, Accounting Consulting incorporated. 2. Accounting Consulting issued 500 shares at $20 per share. 3. In their first month, they have earned $10,000 in revenue. 4. In their first month, they incurred $6,000 in expenses.

Items such as revenue, expenses, and dividends are classified in the accounting equation as __________.

The following amounts are the ending balances for Graphic Design Corporation. Calculate total assets, total liabilities, and total shareholders' equity.

When a person combines personal and business accounts, what concept or principle of accounting is being violated?

Which of the following is a true statement?

Identify and explain the two underlying assumptions of the conceptual framework.

During the life of a business entity, financial statements are prepared at arbitrary points in time. This is according to what assumption?

Accounting is important because the process "keeps score" of the financial aspects of a business.

Payables are included in which financial statement?

The following are the assets, liability, and equity of Anil's Animation. Cash Retained Earnings Accounts Payable Accounts Receivable Office Equipment Common Shares Notes Payable Art Supplies a) What type of business organization is Anil's Animation? b) Identify the accounts according to the accounting equation.

Cash, supplies, and equipment are all part of __________.

The income statement details how cash changed over an accounting period or cycle.

Celia buys a new machine for her shop on credit. What effect does this have on the accounting equation?

Casey invested $5,000 into his business. How will this impact the accounting equation?

Name the first financial statement prepared.

Record the following transactions in the accounting equation. A. Amanda invests $17,000 cash into her merchandising business. B. She buys $6,500 of office equipment and $3,000 of office supplies with cash from Office Depot. C. Additional purchases were supplies for $35,000 on account from various suppliers.

Which of the following do NOT pay taxes through their individual owners?

Which type of business organization is owned by its shareholders?