Exam 1: Business, Accounting, and You

Cash accounting recognizes business transactions when they occur.

Accrual accounting recognizes business transactions when they occur.

Payment of expenses would have which of the following effects on the accounting equation?

If Total Assets remain the same and Total Stockholders' Equity increases, Liabilities will:

By taking accounting classes, the student is learning the "language of business."

The net income figure is needed to prepare:

Considering the reliability principle - what would a bank statement represent?

When an owner combines their personal assets with the assets of their business, what concept or principle of accounting is being violated?

A business pays off a note payable. What effect does this have on the accounting equation?

Information for Bach Corporation's first year of operations is presented below: What was Bach's net income for the year?

Due to the globalization of business, U.S. companies are no longer required to follow GAAP.

A company purchases supplies for cash. What is the net result on the accounting equation?

Which type of organization has stockholders?

The guidelines that describe the rules of accounting are called:

Select balance sheet data for Snow, Inc. is presented below: Snow did not pay any dividends during this period. What is the net income for February?

In the financial accounting records, most assets should be reported at:

Net income is defined as:

Beginning Retained Earnings are $35,000; sales are $52,000; expenses are $44,500 and dividends paid are $3,000. How much is the net income or loss for the company?

Simon lists his building at current replacement value, rather than the price he paid for the building. What principle is Simon violating?

Flowers Forever recorded their delivery van at its current replacement value, rather than the price paid for the van. What principle did they violate?